What is Bankruptcy?

Filing Bankruptcy in Illinois

If you are in debt and are looking for a way to stop the harassment from creditors, we can help. At The Law Offices of C. David Ward, we have been helping individuals with financial relief and filing for bankruptcy protection for over 30 years and we would like to hlep you through the process of reordering your familie's finances.

Most people experience financial difficulties at some point in their lives. While filing for bankruptcy is not the right choice for everyone, in appropriate cases it can provide a much needed fresh start. You should consider bankruptcy if you are behind on car or mortgage payments, your creditors are harassing you, you owe medical bills, you are being sued, and your wages are being garnished or if you are using cash advances on credit cards to meet expenses.

• Chapter 7 and Chapter 13 – Contrary to what you may have heard, Congress has passed legislation, commonly known as the Bankruptcy Code, which provides protection for individuals and consumers from their creditors. The purpose of this legislation is to lawfully allow you debt relief. Chapter 7 & Chapter 13 are the most common forms of this relief under the Bankruptcy Code. The Code also has other Chapters which can help business, farmers and others.

• Non-Bankruptcy Alternatives – For most financially troubled consumer debtors, the only non-bankruptcy alternatives are to determine the extent of your liability for one or more of your significant debts and then try to arrange for a formal or informal out-of-court agreement with the creditors. This would be in the form of a repayment of all or a significant portion of the debt. An experienced bankruptcy attorney can help you with this decision.

• Chapter 7 Bankruptcy  – This is known as the fresh start bankruptcy and allows a person to discharge most or all of his or her debt. Through the use of the “Automatic Stay”, creditors must stop harassing you. By using the “Exemptions” allowed by law, in most instances you will be able to keep your property.

• Chapter 13 Bankruptcy  – This is a debt repayment plan which helps you to consolidate your debts over a three to five year period. To be eligible for Chapter 13, you need to have regular monthly income which is sufficient to make payments to the Chapter 13 Trustee. You can keep your home and car and rearrange your other debt to allow you to live.

• Which should I choose? Chapter 7 is used to “wipe out” certain types of bills and unsecured debt. This will allow you to get a fresh start and regain you financial freedom. If your assets exceed certain exemptions, or you otherwise cannot qualify for a Chapter 7, a Chapter 13 may be best. Chapter 13 is a consolidation of your bills. Creditors are forced to accept payments you can afford. Hiring an experienced bankruptcy lawyer is an important step in helping you make this decision.

Filing bankruptcy is a personal decision. There are many factors to consider. However, many of the myths that you hear are not true. You can get credit after filing. You can often keep your car and home. David Ward can explain all of the factors when deciding if filing bankruptcy in Illinois is right for you. Contact bankruptcy lawyer C. David Ward today to discuss your case.