Despite all of our best efforts, sometimes Joliet, Plainfield, and other Will County residents might consider filing bankruptcy to alleviate debt. However, this is not a decision to be taken lightly. Will County residents should carefully consider their circumstances and consult with an attorney to determine if bankruptcy is right for them.
Your income, as well as, the amounts and the type of debt you owe are important to consider when determining whether to file for bankruptcy, and which type of bankruptcy to file under. Under Chapter 13 Bankruptcy certain debts, such as credit card debt, will be eliminated, however, you will agree to a payment plan and give up some of your future income to go towards the repayment of your debt. Under Will County chapter 7 bankruptcy, most of your debts will be eliminated without any promise to pay future income. However, a trustee is put in charge of most of your funds and property, which he can dispose of or sell to go towards your debt. If you have a steady income and do not wish to lose any of your property you might look towards a Chapter 13 Bankruptcy. It is also important to know that some debts will not be erased by either type of bankruptcy.
There are certain types of debts that neither Chapter 7 nor Chapter 13 can erase. These are known as “non-dischargeable debts” and must still be paid. They include student loans, child support, certain court judgements, and debts secured by collateral (such as a car loan, or a home mortgage). This means that you must continue to pay your car loan and mortgage payment if you wish to keep your property. If most of your debt is non-dischargeable debt, then bankruptcy might not be right for you because these must still be paid. However, depending on your circumstances, the elimination of other debts might free up money to put towards non-dischargeable debts
Bankruptcy should be considered as a last resort. Filing for bankruptcy will hurt your credit and might prevent you from obtaining loans, credit cards, and renting or buying a home in the future. If you do consider to file for bankruptcy, a bankruptcy attorney can help to look at your individual circumstances to weigh the pros and cons to determine if bankruptcy is right for you. To schedule a complimentary consultation with an experienced Will County, Illinois bankruptcy attorney,contact Hamilton & Antonsen at 815.729.9220.