Bankruptcy is a financial situation that none wouldn’t want to find themselves in. If you ever find yourself in debts that you have been unable to pay in time, make sure that you take immediate measures to avoid your creditors from repossessing your property. You can do this by getting a legal assistance from a Bankruptcy Lawyer in Cicero IL to assist you with filing for bankruptcy. Filing for bankruptcy may sound easy but in actual sense, it entails a lot. Below is what you should know if you are considering filing for bankruptcy.
Know when to file
A person is allowed to file for bankruptcy once in every six years. You should not rush into filing for bankruptcy every time you are threatened. But then again, waiting for too long will give your creditors time to seize or repossess your property. You should also be aware that any file opened would stay on your records for the next 10 years. You will have a hard time acquiring credit because of your tarnished records. Talk to your lawyer to advise you on the best time for filing and whether or not you should really file for bankruptcy.
The two bankruptcy chapters
The chapter you choose to file for bankruptcy under should be given a lot of thoughts. There are two types of bankruptcy chapters, and they are chapter 13 and chapter 7. In chapter 13 which is also known as the reorganization chapter, you are allowed to maintain all of your property. This includes personal property that you might have lost through your creditors. You are however allowed to keep them if you promise and are able to pay your debts as expected/agreed in the court. In chapter 7, your unsecured loans are canceled but your unsecured property is used to pay the creditors while you are allowed to keep your secured property.
Avoid debts prior to filing
Make sure that you do not get into any debts for 70-90 days before filing for bankruptcy. This might be argued that you might have known your situation but still took the debt with no intention of paying it. The court might actually make you pay any debts incurred recently.
With help from a Bankruptcy Lawyer in Cicero IL, you will make no mistake. Visit for more information on bankruptcy.
