If you have found yourself in a difficult financial situation and are considering filing for bankruptcy, you have come to the right place. We provide legal counsel to those who are seeking a fresh start and can help you determine if bankruptcy is right for your unique situation, and if so, help you through the process from start to finish. We will be by your side, helping you make the right decisions for your bankruptcy application, particularly in between your chapter 7 and chapter 13 bankruptcy options.
Chapter 7 & Chapter 13 Bankruptcy Attorneys in Elgin, IL
If you are considering filing for bankruptcy, the first answer you should seek is whether or not your bankruptcy application will succeed. There is a certain amount of debt that you are expected to have before you file for bankruptcy in Illinois. There are two types of debts – dischargeable debt, under which most types of debts fall in, and non-dischargeable debt, which includes child support arrears, student loans, and a few tax debts.
Generally, dischargeable debt can influence the success of a bankruptcy petition. We will help you determine the worth of your dischargeable debt as your bankruptcy attorney in Elgin or anywhere else in Kane County and the surrounding areas. Once these calculations are done, we will help you decide whether you are eligible for chapter 7 bankruptcy or not.
This determination requires a few considerations, such as the nature of your assets and other conditions of chapter 7 bankruptcy applications. If you have over a certain amount in non-dischargeable debts, your non-exempt assets are minimal, and you meet the requisites of this category of bankruptcy, we will help you file for chapter 7 bankruptcy in Illinois courts.
Choosing Between Chapter 7 and Chapter 13 Bankruptcy in Illinois
In comparison with chapter 7 bankruptcy, an application for chapter 13 bankruptcy can also be considered in favorable circumstances, which we can help you determine once we meet to discuss your case.
Generally, chapter 7 bankruptcy filing is preferred by individuals because it wipes out all of their dischargeable debts, which means they would not have to worry about new payment settlements and the debt just goes away.
However, not everybody is eligible for this type of application and we advise people with high income or too many non-exempt assets to opt for a chapter 13 bankruptcy in Illinois. In simplest of terms, a chapter 13 bankruptcy is filed to work out a repayment schedule for the debts – in whole or part – over the course of the next 3 to 5 years using their continued income instead of dissolution of their assets and property.
Why You Should File For Bankruptcy
Filing for bankruptcy is not the end of the world and can also benefit you in the following ways:
- If you opt for chapter 7 bankruptcy, you can get rid of all of your debts, which means no more debt collectors banging at your door.
- If you opt for a chapter 13 bankruptcy, you can save your car, house, and other properties.
- Stop your wages from getting reduced.
- Exempt property.
- Stop foreclosures and repossessions (unless the court allows them).
- Stop utilities from shutting down or restore services by paying a reasonable amount of money. You can then pay for the existing service.
- Stop employers and public agencies from getting back at you for filing bankruptcy.
- Get your driver’s license back if it was suspended because of an outstanding debt that can be discharged in bankruptcy.
Reasons Why You Shouldn’t File For Bankruptcy
At Jackson Abdalla Law Group, we provide honest and transparent opinions that can help you make an informed decision. This includes informing you if filing for bankruptcy is not in your best interest. Some of the reasons why we advise clients against this course of action include the following:
- You can only get a chapter 7 discharge once every 8 years.
- In some cases, you can protect your income and property without filing for bankruptcy.
- You may need to return unpaid property, but you can use chapter 13 to save others.
Some debts will also remain after you file for bankruptcy such as:
- Unpaid child support, maintenance, and alimony payments.
- Unpaid fines.
- Student loans.
- Criminal restitution orders.
- Debts remaining from a property settlement that were part of divorce proceedings. While you don’t have to file for joint bankruptcy with your spouse, his/her income has to be included in some forms.
- Damages to an individual caused by driving under the influence.
Starting the Bankruptcy Process
Start the bankruptcy process by hiring a bankruptcy attorney in Elgin, IL, to help you figure out the paperwork you will need for it. This includes itemizing your income sources, main financial transaction for the last two years, information on outstanding debts, monthly living expenditure, and information on owned properties. Additionally, you will also have to provide two year old tax returns, the title of your car(s), documents pertaining to any loans you have and deeds to owned real estate if any.
Once that is done, your attorney can help you determine which properties are exempt from seizure by filing a petition in court. These documents define your current and recent financial status in the last few years.
A Kane County Bankruptcy Law Firm Ready to Help You
Whichever way your case may go, we will be ready to assist you from start to finish of your bankruptcy case. As seasoned bankruptcy attorneys in Elgin, IL, the team at Jackson Abdalla Law Group will provide you the best advice and help you achieve as positive results out of your bankruptcy application as possible.
Call us today on (773) 550-3853 to set up an initial no-obligation consultation.