Bankruptcy Attorney in Elmhurst
If you have ever considered declaring bankruptcy, you may have wondered what kind of effects it will have on your career and your future. You can get every question you have about the bankruptcy process answered by speaking with one of the experienced attorneys at Cutler & Associates, Ltd. If you are facing serious financial difficulties, bankruptcy may be the best way to resolve them. When you need help filing for bankruptcy in Elmhurst, Illinois, get in touch with our law office to schedule a consultation.
What to Expect When You Declare Bankruptcy
If you’ve never declared bankruptcy before, it’s only natural to be uncertain about what happens when you file. Bankruptcy means that your current financial obligations will be resolved, either because they are discharged completely or because they will be paid off using a payment plan. There are two types of bankruptcy that most people will file for:
- Chapter 7. People with low incomes will usually file for chapter 7 bankruptcy. Under this chapter, your unsecured debts will be discharged, and a trustee appointed by the court will sell your nonexempt assets in order to pay back the rest of your creditors.
- Chapter 13. If you have an income that is in the normal to high range, you will probably need to file for chapter 13 bankruptcy. This chapter lets you keep your property, but you’ll need to pay off all of your debts through a payment plan that lasts for three to five years.
Why You Might Want to Consider Declaring Bankruptcy
If your financial obligations have started to exceed your ability to pay them, you should speak with a bankruptcy attorney about how you can find relief from your debt. One of the reasons many people decide to declare bankruptcy is because their debts are disrupting their lives and threatening to deprive them of their home, their car, and their income. When you declare bankruptcy, an automatic stay will be placed by the court. This order has a number of immediate effects, which will last as long as the automatic stay is in operation:
- Any lawsuits that are currently pending against you because of your debts will be stopped.
- Liens and foreclosures cannot be placed on your property.
- Collection agencies will be legally prevented from contacting you via mail or phone.
- Any attempt to garnish your wages to pay your debts will be halted.