Filing For A Chicago Bankruptcy Although bankruptcy filings have dropped over the past year, millions of Americans are still finding that making ends meet is more than they can bear. Jobless statistics are improving and the housing 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 individuals who were the worst hit by the recession saw their savings exhausted and their debts pile up to the point where they have no other option but to file for bankruptcy in Chicago. To be clear, bankruptcy in Chicago does not make one a bad person, and it is a common myth that people who file for bankruptcy have done so only because they lack the discipline to manage their finances. While this might be true for some, for the majority it is incorrect. 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. Whether that storm came by way of a loss of employment, a divorce or an affliction, these people experienced a life-changing tragedy that was not their fault. While serving a purpose, bankruptcy allows someone to shed the debt they are no longer able to carry on their own so they are able to begin again. Not everyone who files for bankruptcy in Chicago will be permitted to follow it through to the end. The first step if you are looking at filing for bankruptcy protection is to speak with a bankruptcy attorney since there are certain standards which have to 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 on your behalf. The cost for a bankruptcy lawyer to file a Chapter 7 (liquidation) or Chapter 13 (repayment) is going to cost anywhere from $1,500 and up. There is always the possibility you can file bankruptcy by yourself, however an attorney will be able to help you navigate far better, reducing the amount of mistakes of omitting a creditor who would still be able to go after the debt if not involved 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 qualified to apply for a liquidation bankruptcy is to pass the means test if you are employed. In Chicago, the household income must not be more than the mean income level. If you make a lot more than the mean, then your option for bankruptcy filing is a Chapter 13, or a repayment of your debts as opposed to liquidation. In spite of which bankruptcy filing you pursue, any and all money you have becomes property of the bankruptcy court. Money in checking and savings and retirement accounts is surrendered to the court-appointed trustee who will apply that money to go towards paying your creditors. Once you file, all credit collection and foreclosure activity is stopped. No more annoying telephone calls should come from creditors. Any debt collection activity such as home foreclosure or car repossession, is halted until your bankruptcy case is closed which often takes about 5 to 6 months. About thirty days after you file, you will attend what is known as a 3-4-1 meeting, or a meeting of Charles T. Newland & Associates
Filing For A Chicago Bankruptcy creditors. Your financial declarations are reviewed during this meeting with the bankruptcy trustee and it will be decided if any assets need to be sold in order to settle your debts. After the meeting is concluded, 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. When you choose to file for bankruptcy in Chicago suburbs, Charles T. Newland & Associates will be a useful ally to handle your case. For additional information on Charles T. Newland & Associates, see their site at http://www.cnewlandassociates.com/.
Document Tags: bankruptcy chicago, bankruptcy chicago suburbs http://www.cnewlandassociates.com/
Charles T. Newland & Associates
Published on Jun 15, 2014
Published on Jun 15, 2014
When you choose to file for bankruptcy in Chicago suburbs, Charles T. Newland & Associates will be a useful ally to handle your case. For ad...