Taking Decisive Action

If you’ve made the choice to file for bankruptcy after consulting with an experienced Chicago bankruptcy lawyer, for some people a Chapter 13 bankruptcy will be preferable to a Chapter 7 bankruptcy. If you are behind on your mortgage, for example, but you want to keep your home, a Chapter 13 bankruptcy lets you make the overdue payments over a period of time. You may also have to file a Chapter 13 bankruptcy if you have too much income to qualify for a Chapter 7 bankruptcy or if most of your debt in not dischargeable under Chapter 7.

However, if you are a debtor who simply wants or needs to eliminate as much of your debt burden as possible as quickly as possible, Chapter 7 is the preferable choice if you qualify. A Chapter 7 bankruptcy eliminates unsecured debts, provides immediate protection against creditors’ collection efforts, and your case is concluded in six months or less. The downside is that in a Chapter 7 bankruptcy, you’ll lose your non-exempted property, your protection against foreclosure is only temporary, and you cannot file another Chapter 7 bankruptcy for at least eight years.

In a Chapter 13 bankruptcy, if you can afford the payment plan, you can keep all your property. You’ll retain protection against foreclosure as long as you meet the terms of the payment plan. You can file a Chapter 13 bankruptcy at any time and repeatedly if necessary. Every person’s financial situation and needs are different, so only by speaking with you personally can your lawyer determine precisely what legal actions are best for you. Even if your debts are mounting and appear to be unpayable, bankruptcy is not always the best solution. The wisest move to make is simply to contact an experienced bankruptcy lawyer and discuss your options. If you are in serious debt, the consequences of not acting could be devastating. Take decisive action now. Make the call and speak as quickly as possible to an experienced Chicago bankruptcy lawyer.