Services of Bankruptcy Attorneys in Illinois

 

The term bankruptcy refers to the declaration that one, whether an individual or business, is unable to pay their debt.  The person who owns the dept is responsible for filing the declaration. In the United States, and thus in Illinois, the declaration becomes a federal matter, so all cases are filed in the United States Bankruptcy Court, but state law has a large effect on individual cases.

A successful bankruptcy attorney helps to establish your needs based on your debt and current economic situation.  Through a consultation, they help to establish how much debt your have and compare it to your income, and what can be done to help reduce this debt through various legal means.  This can, and often does, include debt consolidation techniques outside of bankruptcy, leaving that as a final option.  Should bankruptcy be advantageous for you, they will help you get the proper paperwork filed with the correct courts, walk you through the meetings with the trustees and auditors, and represent you while in court for the petition, working to help get you the best deal possible in the situation.

When attempting to petition the court for bankruptcy protection, many elect to go in under pro per status, meaning they will represent themselves during the proceedings.  While there are many who succeed in filing for bankruptcy in this manner, its is far smarter to enlist the services of bankruptcy attorneys in Illinois, especially with the low cost and added benefits of hiring a lawyer.  Cutler & Associates, Ltd., is a legal firm comprised of several skilled bankruptcy attorneys serving the state of Illinois, primarily in the Chicagoland area.  With over 25 years of combined experience, filing bankruptcy or other debt relief strategies have never been easier.  Through the expert service provided by Cutler & Associates, Ltd., those harassing and embarrassing debt collection letters and calls can be stopped, giving you time to organize and plan a strategy for successfully eliminating or better managing your debts.  You can contact these bankruptcy attorneys in Illinois by calling 847-693-0600 to schedule a free consultation.  Due to the size of the United States bankruptcy code, petitioning for relief without the help of skilled legal counsel could be a huge mistake.

 

Types of Bankruptcy

In bankruptcy, a person or business will either be relieved from the debt or restructure their debt.  Essentially, there are six different kinds of bankruptcy, but the most common are Chapters 7 and 13 for individuals, with more than half of all bankruptcies in the United States being filed under Chapter 7. Companies and business organizations typically file for bankruptcy using the Chapters 7 or 11. The major types of bankruptcy are:

Chapter 7 - Also called Straight Bankruptcy, this is the most common form.  It's used by both individuals and businesses.  All non-exempt possessions are liquidated with the proceeds from their monetary earnings being distributed to the numerous creditors.  For this type of bankruptcy, a petition must be filed and a person's income, when compared with their debt, must be taken into consideration through a Means Test.  A good attorney will help you keep more of your personal possessions that you would be able to keep on your own.

Chapter 9 -This type is used for municipal debts, in which the city, state or political party has loaned someone money.

Chapter 11 - Mostly used by businesses, this kind is called corporate bankruptcy, and usually allows a business to keep working while they repay.  It restructures their debt into a payment plan they can handle.

Chapter 12 - Used by farmers and fishermen, this kind of bankruptcy is similar to the preceding type, but has higher ceiling amounts for debt and is limited only to people of two occupations.

Chapter 13 - Called the Wage Earner Bankruptcy, this type allows people to pay all or part of their debts while they work.  This is a popular form of bankruptcy in Illinois since it restructures debt into a more manageable payment plan, helping to avoid the liquidation of property and possessions.  Certain requirements must be met to be granted this kind of bankruptcy protection.

Chapter 15--This is for international situations, where the debtor has loans outside of the United States.

These major forms of bankruptcy are all available to those who meet the requirements.  Having experienced bankruptcy attorneys on your side can greatly increase your chances of receiving financial protection protection.

Illinois Bankruptcy Laws

Bankruptcy attorneys in Illinois will help a person living in the state deal with a bankruptcy. Since states differ according to regulations in how bankruptcy is handled, you will want to meet with a lawyer to discuss these laws and if you should really file. Bankruptcy attorneys in Illinois will make you aware that bankruptcy will not relieve you of student loan debt, child support payments, governmental agency fines or penalties, cash advances made within 70 days of filing for bankruptcy, luxury goods purchased within 90 days of filing for bankruptcy, and other specific rules.

There are stipulations to filing, including tallying in the median annual income. Also, a bankruptcy attorney in Illinois will let you know that you have to get credit counseling prior to declaring bankruptcy, due to new legal requirements being passed in 2005. The credit counseling needs to be approved.  Also, bankruptcy does not officially begin until a person has filed a form called the Statement of Financial Affairs, a long document that details all debts, contact information for all of your creditors, and a list of all of your assets. Any questions on the form not answered honestly can result in bankruptcy fraud.

There are a number of personal possessions that cannot be seized through a declaration of bankruptcy, and by scheduling a free consultation with Cutler & Associates, Ltd., not only can your current financial situation be assessed by a legal professional, but you can come out of your proceedings with more personal assets than you would going into it alone.

Add Your Comments about Bankruptcy Attorneys in Illinois: