Many Americans are skating on thin financial ice. A single illness or job loss can prevent them from paying their monthly bills. People who have worked their entire adult live are often embarrassed by this situation and they often wait too long to get help. As soon as they realize they can’t cover their living expenses, they should contact a bankruptcy attorney in Chicago. If they are still current on their car and house payments, then the lawyer has a better chance of protecting these assets in any bankruptcy filing.
Lawyers at the Lake Law Firm can review a person’s income and debt and determine the best strategy to help them. Some people are so ashamed of their situation it’s hard for them to organize their papers and show them to an attorney. The Lake Law website has a secure area where prospective clients can organize their financial records from the privacy of their home. That way the lawyer can review their records before the first meeting.
If a Chicago resident makes under the median income for the state of Illinois, then they automatically qualify for the Chapter 7 bankruptcy process. While secured debt such as a home or car is excluded from the process, it is much easier for people to pay those bills after other debt has been erased. As soon as a person files for bankruptcy, all calls from creditors stop. This often reduces a person’s stress level immediately. The court appoint a trustee who sells any assets that aren’t protected. A bankruptcy attorney in Chicago ensures that the trustee only sells what the law allows. The proceeds from the sale are distributed among the creditors and the remaining debts are forgiven. The entire process takes about three months.
If a debtor makes more than the median income, they are generally required to use Chapter 13 to declare bankruptcy unless they can meet a stringent means test. Under this scheme, the court can require them to make payments to creditors for up to five years. The means test evaluates the type of debt that the debtor is carrying and the type of income they receive. An attorney has to demonstrate that they are not financially able to make payments under Chapter 13 to qualify for Chapter 7. Browse Lakelaw.com to know more.