Fewer Bankruptcies Is Good News For All
Consumers and businesses are filing fewer bankruptcies. This means that the U.S. economy is doing better and that people are having fewer debt difficulties. Total U.S. bankruptcy filings decreased 14 percent in January 2015 from the same period last year, according to the American Bankruptcy Institute (ABI). Bankruptcy filings also decreased by 7 percent in Illinois in 2014 over 2013. Still, Illinois had the fourth-highest per capita filing rate (total filings per 1,000 population) in January 2015 with 3.89 bankruptcies for every 1,000 Illinois residents. If you are facing overwhelming debt in the Chicago area, bankruptcy may or may not be the solution that’s right for you, but an experienced Chicago bankruptcy lawyer can help you make the right choices and start you on the path to a debt-free future.
Chapter 7 bankruptcy is available in Illinois to debtors whose average monthly income for the previous six months is below the state’s median income. In Illinois, the median income for a single-person household is $48,232 annually (as of November 2014). People with higher incomes may file for Chapter 7 bankruptcy only by passing a rigorous means test. How your monthly income compares to the state median also determines how long you will be in Chapter 13 bankruptcy if that’s your option. If you earn less than the median income, your plan should not last longer than three years, although the bankruptcy court may extend it up to five years for good cause. If your monthly income matches or surpasses the state median, your plan generally lasts five years, but if you can pay all of your unsecured debt in less time, your Chapter 13 plan may be shorter.
Bankruptcy is complicated, and if it’s your first bankruptcy, it can be quite intimidating. Let a good bankruptcy lawyer answer your questions, address your concerns, and guide you through the Illinois bankruptcy process. If you’re in or near Chicago, and if you see no way to pay your rising debts, arrange to speak at once with an experienced Chicago bankruptcy lawyer.
