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Understanding the bankruptcy process in Illinois is crucial to utilizing it to your advantage. The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13 bankruptcy. Both of these mechanisms function in different ways, but the goal remains the same: to provide financial stability.

Chapter 7 bankruptcy is also often referred to as liquidation bankruptcy. This allows you to discharge most unsecured debts, such as medical bills and credit card balances, within just a few months. However, the means test must be passed to qualify, which is an assessment of your income and overall financial situation. Additionally, with the oversight of a Chapter 7 bankruptcy lawyer, some non-exempt assets may be sold to repay creditors.

Chapter 13 bankruptcy, also known as reorganization bankruptcy, is for those who have a steady income and can repay a portion of their debts over a period of three to five years. This is a viable option for those seeking to avoid foreclosure and keep assets. A Chapter 13 bankruptcy lawyer can help you come up with a structured repayment plan that is tailored to your circumstances.

Deciding between these primary options can depend on multiple factors, including assets, income, and long-term financial goals. For this reason, it is important to consult with an attorney who can help you choose the most appropriate path ahead.

The Bankruptcy Process: How An Attorney Can Help You Streamline It

Filing for bankruptcy requires multiple legal actions, requirements, and documents. A lawyer plays an integral role in simplifying this process and avoiding costly mistakes.

First, a legal professional will evaluate your financial situation and determine the best course of action to take. They will ensure you meet all eligibility requirements and help gather necessary financial documentation, such as income statements, debt records, and asset valuations.

From there, they prepare and file the bankruptcy petition with the court, making sure everything is accurate in order to prevent delays or dismissals. Once filed, an automatic stay is implemented, which stops creditor harassment, wage garnishments, and other collection efforts.

Finally, your legal counsel will assist with court hearings, reaffirmation agreements, and discharge paperwork. This ensures compliance and reduces stress – all while maximizing the benefits of bankruptcy protection.

In reality, bankruptcy will significantly impact your credit score, but it doesn’t mean the end of your financial future. Chapter 7 bankruptcy will remain on your credit report for 10 years, whereas Chapter 13 bankruptcy will stay for 7 years. Initially, your score will drop, but you will immediately begin rebuilding credit after discharge.

While lenders may see you as a higher risk, many individuals find that the benefits of removing debt greatly outweigh the damage to their credit score. What’s more, you can gradually begin rebuilding your creditworthiness by making timely payments, monitoring your reports, and obtaining a secured credit card.

Call Citizens Law Group LTD For Financial Relief

Our Cook County, IL bankruptcy lawyers will stop at nothing to ensure your needs are met.

Your search for a “bankruptcy lawyer near me” ends here. To learn more about how Citizens Law Group LTD can help you achieve your goals, a simple phone call is the best way to get started. To schedule a consultation with a member of our team, call (872) 274-2747 or click here today!