Deerfield Bankruptcy Lawyer
Have you received multiple debt collection calls? Does the threat of foreclosure prevent you from checking your mailbox each day? Unfortunately, these situations are common, but there are solutions available to help you find debt relief in Deerfield. Bankruptcy may be the answer, but it is not right for everyone, so it’s important to talk to a lawyer for a personalized look at your unique financial situation. You can do just that with Cutler & Associates, Ltd., where we have more than 20 years of experience representing bankruptcy cases. We are dedicated to doing everything in our power to stop the harassment you are receiving from debt collection agencies, even if you do not end up filing for bankruptcy.
Is Bankruptcy Right for You?
Bankruptcy tends to benefit individuals who have large sums of unsecured debt that they are unable to pay off in a reasonable period. Unsecured debts include credit card debt and medical bills—in other words, debt in which there is no physical collateral. Bankruptcy cannot eliminate debts like tax liabilities and spousal or child support, and it also cannot always prevent repossession activity, even when an automatic stay is put on debt collection activity. You should also recognize that there are different types of bankruptcy, and they can accomplish different things. There are two types used by individuals, and one option may be more appropriate for you than the other.
- Chapter 7 – Chapter 7 is not available to all consumers, as it will eliminate or dramatically reduce debts so that no future payments are due on those debts after you file. Some property may be liquidated during debt negotiation, but there are exemptions to prevent you having to surrender your retirement account, life insurance policies, and similar assets.
- Chapter 13 – In chapter 13 bankruptcy, debt is restructured, so you will continue to pay off your debt after you file. You will, however, pay much less than your original balance, and you will not have to liquidate assets during the negotiation process. If you make too much money to qualify for chapter 7 bankruptcy, chapter 13 is likely your best option. Chapter 13 is also helpful if you are trying to prevent foreclosure, because your mortgage can be included in the debts that you restructure.
Will Bankruptcy Help or Hurt Your Credit?
Bankruptcy does not automatically repair your credit, but it can immediately halt collection activity and stop delinquent accounts from damaging your credit further. The negative information on your credit report related to filing bankruptcy will remain on your report for 7-10 years, but your credit score will likely improve dramatically much sooner than that. To fully understand what you can expect from bankruptcy in Deerfield, call Cutler & Associates, Ltd. and schedule your free bankruptcy evaluation.