Debt is a troublesome issue for many. It slowly erodes away one’s quality of life since every spare cent goes towards paying bills just to keep up. When the bills get too much, bankruptcy may be a way out of it all. Taking this step may seem like a drastic one, but it can be a lifesaver in that it eliminates eligible debts and helps reorganize existing ones if necessary. And, filing for bankruptcy does not necessarily mean that every last physical possession has to be given up. In fact, chapter 7 bankruptcy attorneys in Chicago can explain how this is all possible.
Chapter 7 bankruptcy takes all of your debts that are eligible (student debts and certain court-ordered debts are ineligible) and discharges them after a certain amount of time. The way this is done is through what is known as a permanent injunction. This injunction is in place for the rest of a petitioner’s life, and creditors must put the debt to rest. All creditors are barred from contacting you again, ever, and if they do, a lawsuit can be filed against them.
When a bankruptcy is filed, the first thing that happens is that creditors are notified of the filing. This is in order to ensure that they are informed of the temporary stay, which prevents them from contacting a petitioner while the bankruptcy is active. No collection activity can take place after the petition has been filed and a case is opened. However, there are some debts that you may want to continue, such as a car payment. This is allowed by the court, especially if there is no asset value in the car, and is known as reaffirmation of debt.
Once the Chapter 7 bankruptcy is opened, a multi-faceted process begins in order to make sure that a petitioner is telling the truth and that debts can be discharged. Before going forward with filing, however, it is best to set up a consultation with chapter 7 bankruptcy attorneys in Chicago first. Discussing the situation with a lawyer helps a potential petitioner with making the decision to move forward or to find alternative ways to handle debt. Browse the site to know more.
