One of the first things you might discuss with your Aurora bankruptcy attorney is whether to file for Chapter 7 or Chapter 13 bankruptcy. This decision will depend on your debt, income, and goals in filing a bankruptcy petition. Your decision may also depend on your property ownership and whether or not you own a business.
Difference between chapters
When you meet with your bankruptcy attorney in Schaumburg, he or she will go over the differences between Chapter 7 and Chapter 13 bankruptcy petitions. Chapter 7 bankruptcy is commonly referred to as liquidation bankruptcy or straight bankruptcy, as it provides you with protection from creditors and relief from many of your debts. However, if your income is higher than the median income in your state, you may need to file Chapter 13 reorganization bankruptcy. This allows you to make a monthly payment to the court over the next three to five years to pay back all or most of your debt.
Value of your property
If you would like to keep your property during the bankruptcy process, you need to first assess whether your properties are at risk. This may require you to seek appraisals on any rental property or places of primary residence. You can also find this information out from valuation websites like Zillow.com, which help you assess equity prior to a full appraisal.
Value of business assets
If your business income equals your expenses, appraising your business might not be such an issue. However, every business is unique and the typical small-business value is based on your best efforts and business relationships. However, if you are a business owner, you will still need to form a business profit-and-loss report for the past 12 and six months. It’s usually better to start this step prior than meeting with a Schaumburg bankruptcy attorney.
At Cutler & Associates, Ltd., we understand that an aggressive debt relief lawyer can be your best option for relieving your debts. When you call our firm, you will receive a free over-the-phone consultation with an Aurora bankruptcy attorney.