How to Declare Bankruptcy Millions of Americans are still finding it difficult to make ends meet and even consider bankruptcy options although the numbers have dropped over the last year. Jobless statistics are improving and the real estate market shows signs that home values have begun to make a turn for the better, but the simple fact of the matter is that many people who were the worst hit by the recession saw their savings depleted and their debts pile up to the point where they have no other alternative but to file for bankruptcy in Chicago. To be clear, filing for bankruptcy in Chicago does not make one a bad person, and it is a common misconception that people who file for bankruptcy have done so only because they lack the discipline to manage their finances. In some cases, this might be true. The overwhelming majority of people declaring bankruptcy come from honest, responsible consumers who simply were not able to weather the financial crisis the world has experienced recently although poor spending habits are connected to a percentage of those who file. Most experienced life changing tragedies that was certainly not their fault, like the loss of employment, a divorce, an illness or even a death where a two income home all of a sudden became one. Bankruptcy law does serve a purpose; it allows a person to get rid of debt they are no longer able to carry so that they have the opportunity to start new. It is important to understand that not everyone who files for bankruptcy in Chicago will be permitted to follow it through to the end. The first step if you are thinking about filing for bankruptcy protection is to consult with a bankruptcy attorney since there are certain standards which must be met first and foremost. If you have a qualified bankruptcy attorney representing you, filing for bankruptcy is not such a complicated task when they are doing all the work for you. To file for bankruptcy, either Chapter 7 (liquidation) or Chapter 13 (repayment), an attorney will definitely cost about $1,500 or more. There is always the possibility you can declare bankruptcy yourself, however an attorney will be able to help you navigate a lot better, reducing the amount of mistakes of omitting a creditor who would still be able to go after the debt if not included in the filing. When you meet with an attorney, you will fill out financial papers and provide your latest tax filing as well as bank statements and verification of income. The first step to be eligible for a liquidation bankruptcy is to pass the means test if you are working. In Chicago, the household income must not be more than the mean income level. Chapter 13 filing is the option should you make greater than the means and requires a repayment of the debts instead of a liquidation. Irrespective of which bankruptcy filing you pursue, any and all money you have becomes property of the bankruptcy court. An appointed court trustee will be in charge of any money in checking, savings and retirement accounts whereby the funds are disbursed to the creditors you owe a financial debt to. As soon as you file, all credit collection and foreclosure activity is stopped. Creditors at that point, are not able to contact you in connection with debt. If you are in the process of getting your car repossessed or your home foreclosed on, those activities are stopped as well until your bankruptcy case is closed, usually 5 to 6 months afterwards. Somewhere around thirty days after you file, you will attend what is known as a 3-4-1 meeting, or a meeting of creditors. This meeting is with the bankruptcy trustee to analyze your financial Charles T. Newland & Associates
How to Declare Bankruptcy declarations and to evaluate if any assets have to be sold in order to help pay your debt. After the meeting is completed, the courts allow a short window of time for any creditor to protest your bankruptcy filing and if none do, then your case is finished and most of your debts are wiped clean. Once you speak with Charles T. Newland & Associates, you'll be relieved that your bankruptcy in Chicago will be managed and processed by experts. To learn more about Charles T. Newland & Associates, stop by their webpage at http://www.cnewlandassociates.com/.
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Charles T. Newland & Associates
Once you speak with Charles T. Newland & Associates, you'll be relieved that your bankruptcy in Chicago will be managed and processed by exp...