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After New York, Chicago is the city with the largest number of bankruptcy cases. If you live in Chicago, Illinois and are considering filing for Chicago bankruptcy, we recommend reviewing your options with a bankruptcy attorney. The article outlined below has been provided by our Chicago bankruptcy attorney. Advantages and disadvantages of Chicago bankruptcy |
Advantage: Personal bankruptcy stops your creditors from pursuing you.
Obviously you go bankrupt because you have more debt than you can handle. The people you owe money to may be threatening legal action, or attempting to garnishee your wages. Bankruptcy prevents your creditors from taking this action in most cases. It allows you a fresh start, so you can get on with your life.
Advantage: Personal bankruptcy reduces the stress in your life.
Having creditors call you at all hours of the day and night is very stressful. Once you file for bankruptcy protection, your creditors will stop calling. Your wages will no longer be garnisheed. Legal actions will stop. No legal action or lawsuits for unpaid debts can be started against you when you go bankrupt. Filing for bankruptcy makes your financial life much less stressful. You will no longer be afraid to answer the telephone, answer the door, or open your mail.
Advantage: Personal bankruptcy gives you a fresh start.
Your financial problems may have been caused by job loss, marriage separation, high medical bills, or financial mismanagement. Regardless of the reason, if you are now ready to get back on track, a fresh start is essential. Personal bankruptcy is a way to get that fresh start. Of course it does not mean that all of your problems will be solved, but it does mean that you have taken the first step to getting your financial life back in order.
Disadvantage: Chapter 7 bankruptcy is not an instant solution.
Chapter 7 bankruptcy is not an instant process. In Chicago you probably will want to have the assistance of a bankruptcy attorney, and you will probably have to appear in court and complete other duties. You will have to meet with a credit counselor, and complete other duties. You may need to take time off work to attend in court.
Disadvantage: Chapter 7 bankruptcy is not for everyone.
There are other ways to deal with your debts other than Chapter 7 bankruptcy. If you have a reasonable income, a debt consolidation loan may be a possible solution. If you have assets that you can use as security for a loan, such as a car or a house or a boat, debt consolidation may be the correct solution. Before deciding on a course of action, you should consult a competent professional advisor for advice on your unique situation.
Disadvantage: You may not be permitted to file Chapter 7 bankruptcy.
If your income is above a certain limit, you may be required to file for protection using a Chapter 13 Wage Earner Plan. While Chapter 13 plans may take longer and increase the amount you are required to play, for many people they are still a good Chicago bankruptcy alternative. Click on the Chapter 13 link to read more about how Chapter 13 personal bankruptcy works when filing for Chicago bankruptcy.
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