Grayslake Bankruptcy Lawyer
If you are getting calls from creditors attempting to collect debt or have received letters warning of foreclosure or repossession, you may be tempted to ignore these notices and hide from creditors. However, failing to respond to creditors can make your situation even worse, since debt collectors may be entitled to pursue payments through a lawsuit which can result in wage garnishment. Instead of trying to run from creditors, you can create a pathway to restored financial independence and reduced stress by talking with a bankruptcy lawyer in Grayslake. Cutler & Associates, Ltd. can help you understand the process of bankruptcy and whether you qualify to file. Even if bankruptcy is not the right decision for your needs, you may benefit from legal counsel regarding debt consolidation and direct negotiation with creditors. Ultimately, your creditors would prefer to work with you and receive some portion of what you owe rather than continuing to harass you with calls and letters, but you need an attorney to help point you in the right direction and represent you during debt negotiation.
Types of Bankruptcy
For individual consumers, there are two types of bankruptcy to consider. These vary in a few key ways, but they will each put an automatic stay on debt collection attempts and help you rein in your debt to a manageable sum or eliminate it entirely.
- Chapter 7 – With chapter 7 bankruptcy, some of your assets will be liquefied to pay a portion of what you owe to creditors, and the remainder of your debt will be wiped out. Assets like your retirement account, car, and life insurance policies can be preserved through the liquidation process with the help of your bankruptcy attorney.
- Chapter 13 – Chapter 13 varies from chapter 7 because it does not liquidate assets. Instead, it requires that you pay some portion of your debt with a payment plan that will restructure payments to an affordable amount.
Alternatives to Bankruptcy
Some types of debt are not able to be reduced or eliminated through bankruptcy, such as child support and certain tax penalties. If these are the primary source of your debt, bankruptcy may not be the right solution. Alternatively, you may only have outstanding debt from one line of credit, such as a single loan or credit card that you have been unable to pay. In this situation, it may be more appropriate to negotiate directly with the lender or debt collection agency.
Choosing the Right Solution
Your situation is unique and requires a first-hand assessment to determine what’s right for you, whether it’s chapter 7, chapter 13, or a bankruptcy alternative. To discuss your bankruptcy and debt relief options in Grayslake, call Cutler & Associates, Ltd. at (847) 282-4899 to schedule your free consultation.