Chicago Bankruptcy Attorneys -- Is Bankruptcy Right For Me?
Choosing to file for bankruptcy is a big decision -- and if you are in a
stressful financial situation, big decisions can be especially tough
to make. The choice to file for bankruptcy is a very personal one,
and it is one that
should not be made until you have assessed all of its advantages and
disadvantages. Read on for some of the advantages and disadvantages
of filing for bankruptcy
in Illinois.
Advantages of Filing for Chapter 7 Bankruptcy
- All unsecured debts (i.e. credit cards, payday loans, utility
bills) can be forgiven.
- You can keep your home if you do not have too much equity and keep your vehicles if you continue to make payments.
- Bankruptcy may allow you to negotiate new terms on secured
debts like your home mortgage.
- The law will protect you from further harassment from creditors,
and give you recourse in the event that your old creditors cause
you any damages.
Disadvantages of Filing for Chapter 7 Bankruptcy
- If you own valuable property that is not exempt, it may be liquidated
to satisfy creditors.
- Bankruptcy is a matter of public record, and will show on
your credit report for 10 years.
- Bankruptcy clears most of your debts, but it is not "free." There
are bankruptcy attorney fees and other legal costs involved. You
must weigh the cost of proceeding with bankruptcy against the total
of your
outstanding debts.
Some Common Misconceptions About Bankruptcy
- I cannot get loans or credit cards after a bankruptcy -- This
is not true! You will still be eligible for credit and loan offers
soon after you file for bankruptcy. You may be offered lower limits
and higher
rates as a result of the bankruptcy.
- I can never buy a home after a bankruptcy -- Absurd! About
two years after you file for bankruptcy you should be able to qualify
for a loan comparable to other borrowers at your income level. While bankruptcy may play a factor in determining your mortgage
rate, etc, mortgage lenders are more interested in whether you can
pay for
the home. A bankruptcy also means that you may have no old creditors
who can file a lien on your new home.
Experienced Illinois Bankruptcy Attorneys
We at the Chicago Bankruptcy Attorneys of John Redfield and Associates hope
this short "pro and con" comparison can help you decide on the right path.
Feel free to give our Illinois bankruptcy attorneys a call. Our IL Bankruptcy
experts can help you make the best choice to ensure the healthiest financial
future for your unique situation.
Contact our offices for a free consultation where we can discuss and determine
whether or not bankruptcy filing is the best option for you and your finances.
We have experienced Chicago bankruptcy attorneys well versed in the specifics
of Illinois bankruptcy law that will provide tailored solutions to your unique
situation. Call us today at 847-382-1220.
Get started on your new financial future!
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