Prospect Heights
Find a Solution for Your Debt With a Bankruptcy Attorney From Prospect Heights
Are you one of the millions of Americans who is overwhelmed by debt? If your debt has taken over your life, it’s time to take it back, with assistance from a bankruptcy attorney in Prospect Heights from Cutler & Associates, Ltd. Although bankruptcy laws exist to protect consumers, you should never attempt to file on your own. You need an experienced, determined bankruptcy attorney on your side who will fight for your rights and help you protect your assets while you get the debt relief you need.
Chapter 7 vs. Chapter 13
One of the first decisions you will make with your bankruptcy attorney is whether to file for Chapter 7 or Chapter 13 bankruptcy. The type that is right for you typically depends on your assets and income.
- Chapter 7: This kind of bankruptcy usually resolves most types of debts for good. To qualify for this kind of bankruptcy, the court will administer a means test to see if your income is below the median income in your area or if your expenses make it impossible for you to pay your debts.
- Chapter 13: With Chapter 13 bankruptcy, the amount you have to pay to settle your debts will be reduced, and you will be given an extended period of time to pay, usually three to five years. The amount you have to pay on your debts will be determined by your income.
In both types of bankruptcy, most people are able to keep important assets, like their homes, cars, retirement accounts, and life insurance policies. Protecting these assets is one of the reasons it is so critical to have a bankruptcy attorney by your side throughout your proceedings.
Bankruptcy Basics
Bankruptcy is a status that is granted in a court to someone who is unable to pay his or her debts. Your bankruptcy attorney will help you prove that you are not financially able to satisfy the debts you have, and once the court agrees, your creditors will no longer be able to pursue collection actions against you. For private individuals, there are two types of bankruptcy: Chapter 7 and Chapter 13. Businesses who file for bankruptcy must seek a different form of settlement, called Chapter 11. What happens to your debts after your file for bankruptcy depends on the type you choose to pursue.