Illinois chapter 13 bankruptcy
Procedurally, how does the bankruptcy work
First, you would discuss your entire situation with your attorney.You will need to be prepared to discuss all areas of your financial life, including each and every debt and creditor you have. It is very important to list all of your creditors in your bankruptcy.You will also discuss all of your assets, the values of the assets, whether they are exempt (and can therefore be kept) and also what your income situation is. After a full review, a determination can be made as to whether bankruptcy is right for you and, if so, which chapter. If not, there may be non-bankruptcy alternatives.
If a determination is made that bankruptcy should be utilized, the common course is that a Petition is filed with all of the pertinent information.Eventually, a Trustee is appointed and you would attend, with your attorney, a "341 Meeting" (referring to Section 341 of the Bankruptcy Code, also called the "First Meeting of Creditors") to discuss your situation with the Trustee. At this hearing the Trustee will ask you questions under oath regarding your bankruptcy papers and their contents. After the Trustee is done, creditors will be permitted to question you.
In Chapter 7, a discharge would follow. After this hearing, you would not normally need to return to Court. However, if a creditor files a motion or an adversary action, you will probably have to return to court. This is the exception and only your attorney can determine if this is likely to happen.In Chapter 13, a hearing before a Bankruptcy Judge would take place to approve your plan and the discharge would follow the completion of the plan.
Is Bankruptcy expensive
Probably less expensive than paying the excessive interest rates that you have been paying on your credit cards! This question can only be answered after a full review of your entire situation with your lawyer.
How do I choose a bankruptcy attorney
When considering filing a bankruptcy, you want to be advised by someone who is familiar and experienced with all of the "ins and outs" of bankruptcy law. Especially when you own a home or car or have other assets that you are trying to protect, you do not want your advice from an attorney who knows a little bit about a lot of different areas of law, but not a lot about bankruptcy. When you call a bankruptcy attorney for information regarding bankruptcy, ask them exactly how many bankruptcies they have done. Educate yourself about your options, but be educated by someone who is qualified.
Other Useful Information :
With the new bankruptcy laws in effect, debtors will have to first pass a two-part means test before filing for Chapter 7 bankruptcy. First, a quick definition of Means Test: Means = Money, property, or other wealth
How To Rebuild Credit After Bankruptcy
Pay your utility bills and rent on time for at least a year.
Apply for store and gas credit cards that you would normally pay cash.
Apply for a secured card where you deposit cash and charge against it. Be sure to pay advances back over two months so that they will be reflected as positive marks on your credit report.
Look for car dealers and mortgage brokers that attest to be "bankruptcy friendly lenders".
Stay away from payday loans that are at high interest rates and are a "bad credit" trap.
Live within your means.Do not unnecessarily increase your debt to income ratio by taking on credit to purchase luxury items that you DO NOT NEED.Your payments on consumer debt should equal no more than 20% of your expendable income after costs for housing and a vehicle.
Pay your reaffirmed, pre-bankruptcy debts on time.
Write a letter to each credit reporting agency explaining the circumstances that lead to your bankruptcy filing.
Find a friend or relative to cosign for you on a loan and pay it on time.
Other Articles
