New Lenox Bankruptcy Attorney
New Lenox Bankruptcy Attorney
Filing for bankruptcy allows certain qualifying individuals and businesses that are unable to meet their financial obligations to be absolved of some or all of their debts. The rules and procedures that go along with filing for bankruptcy are governed by federal law. In fact, individual states are prohibited from legislating in this area of the law, so if you are considering filing for bankruptcy, it is important to retain an experienced New Lenox bankruptcy attorney who is well-versed in federal law and is familiar with the process of filing for bankruptcy.
Types of Bankruptcy
Although there are a number of different types of bankruptcy proceedings, there are actually only two main kinds of bankruptcy, known as liquidation bankruptcy (Chapter 7) and reorganization bankruptcy (Chapter 13). The former requires filers to surrender certain non-exempt assets, which are then sold and the proceeds distributed to creditors. In exchange for agreeing to take this step, a person’s debts are permanently discharged. Reorganization bankruptcy, on the other hand, allows debtors to keep their assets, although they will then be required to enter into an installment plan, under which they must agree to repay creditors a portion of their debt.
The Benefits of Filing for Bankruptcy
Filing for bankruptcy comes with a number of benefits. For instance, Chapter 7 provides a complete discharge of unsecured debt, such as credit card debts and personal loans, while Chapter 13 bankruptcy allows debtors to keep their assets in exchange for making monthly payments to pay off their debt over the course of three to five years. Similarly, under Chapter 13, certain types of secured debt can be restructured by reducing the principal to the market value of the collateral. Furthermore, payments for secured debts can be renegotiated at a lower price by extending the repayment period to five years.
Filing for Bankruptcy in New Lenox
Whether a person chooses to file for liquidation or reorganization bankruptcy, he or she will be required to submit a petition and a fee to the proper bankruptcy court. The former must contain sworn statements concerning the filer’s debt, income, expenses, and assets, while the latter varies depending on the type of proceedings in question. Once submitted, this petition will be reviewed by a court, which will hold a hearing to determine its validity.
It is also important to note that while bankruptcy is usually available to all individuals and businesses, certain people and companies are not permitted to file, including those who have had their debts discharged under Chapter 7 within the last eight years, or Chapter 13 within the last six years. Those who have too much disposable income may also face complications when filing for bankruptcy, as a means test is used to weed out those who make enough money to repay their creditors. However, those who do not satisfy the means test may still be able to file for reorganization bankruptcy. The skilled New Lenox bankruptcy lawyers are ready to help with your financial issues.
Contact an Experienced New Lenox Bankruptcy Attorney
To schedule an initial case evaluation with a dedicated New Lenox bankruptcy attorney, please call Forst Law Offices at (708) 873-1623 today.
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