Bankruptcy May (or May Not) Be Right For You

If you face mounting debts in the Chicago area, you may be considering bankruptcy. If you’ve considered it seriously, you should speak to an experienced Chicago bankruptcy lawyer who can examine your particular circumstances and recommend the best options. You may not need to file for bankruptcy. Even if you’re facing unpayable debts, you still may not need bankruptcy to protect your assets. Under the exemption laws in Illinois, you may be “judgment-proof” for legal purposes. If so, you need not fear credit card companies; they can’t take your exempt possessions. However, Illinois’ exemption laws do not protect all of your property from all types of creditors. The government may still collect child support, student loan debt, and tax debt. And if you own property but pledged it as collateral for a loan, the lender can take the property, and exemption laws will not protect it.

A Chapter 7 bankruptcy is quick – it takes only a few months – and thorough when it comes to wiping out unsecured debts like medical and credit card debts. However, you can file a Chapter 7 bankruptcy only once every seven years, so it’s best to adhere to your lawyer’s recommendations. While bankruptcy isn’t right for everyone with mounting debt, your particular combination of debts, income, and property may in fact be appropriate for bankruptcy protection.

And of course, any decision to file for bankruptcy first requires a comprehensive, systematic assessment of your income, your debts, and your assets and property. Don’t try to file for bankruptcy in Illinois by yourself. Any mistakes could delay your bankruptcy or void it and cost you much more in the long run. Instead, take your questions and concerns promptly to an experienced Chicago bankruptcy lawyer who can explain your options and help you deal with mounting debt in the most practical, appropriate manner.