Chicago Bankruptcy Lawyers Getting People Out From Under Overwhelming Debt

The benefits of Chapter 7 and Chapter 13 bankruptcy

As you consider bankruptcy, you may be unsure which type to file for. There are two types for personal bankruptcy: Chapter 7 and Chapter 13. Each takes a different approach to eliminating debt.

Knowing the benefits of each may be a contributing factor in your decision. However, the best way to know which is right for you is by consulting a bankruptcy attorney because there are requirements you must meet for each type.

Tips for buying a house after you emerge from bankruptcy

The good news first: Plenty of people have been able to buy a house after their bankruptcies were settled. Now for the bad news: Well, there actually is not any. You do have to exercise some patience and diligence, but these are good characteristics to have anyway.

Learn more about successfully getting a house after bankruptcy discharge.

Dealing with the emotional aspects of bankruptcy

A lot of the talk around bankruptcy focuses on finances. That makes sense, as bankruptcy is often about matters such as drowning in medical debt and credit card bills. However, while the legal process provides the fresh start you need financially, it may not help you much with the feelings that are threatening to overwhelm you.

The truth is that even though many Americans are only one big medical emergency away from being in your shoes, it is still common to suffer feelings of embarrassment or weakness when the time comes to file the paperwork. The emotional component of bankruptcy may go beyond these surface anxieties, too. For example, you may have lost property that meant a great deal to you, or you may face heavy disapproval from family members.

Ways to minimize student loan debt

You are finally looking forward to the future and working for the things you have always wanted. You are out of high school, enrolled in your dream university and are ready to move into your dorm. Suddenly, you are facing a big question: How are you going to pay for all this?

Excessive student loan debt is a major reason that Americans end up in financial trouble. If your salary does not match your student loan payments, you could be looking at an unsure future despite all your hard work. While bankruptcy rarely discharges student loans, there are other ways to negotiate rates and payments and save money in the long run.

Common business bankruptcy mistakes to avoid

Chicago is known for many things, and a thriving corporate climate is certainly one of them. The city is home to major international corporations as well as many local companies. According to World Business Chicago, several factors indicate that businesses in Chicago are continuing to grow, but there are still many others that face financial struggles and debt. If you are considering bankruptcy as an option for your business, you should be sure to avoid these common mistakes.

Don’t make preferences in your payments

Can student loan debt be discharged in bankruptcy?

U.S. bankruptcy law has a number of interesting and complex rules that determine exactly which debts can be fully discharged, and which are exempt from discharge. These also help to identify the shades of gray that come in when there are items that may only be discharged under certain circumstances. These myths help to fuel a large number of misconceptions about bankruptcy, such as the common perception that student loan debt cannot be discharged.

Emergency care and medical debt: Is it dischargeable in bankruptcy?

Medical bills can be astronomical. This is true whether the care involves out-patient care or more serious, emergency situations. This reality was recently discussed in a piece by the Associated Press.

The story involves a man that required urgent care. The only way to get the treatment he needed was to receive transportation through the use of an air ambulance transportation service.

Is the cost of ambulance transportation covered? Unfortunately, even if a patient has medical insurance not all the medical costs needed for care may be covered. As a result, the answer to this question depends on the language of your insurance policy and the details of the situation.

Mistakes in the insurance directory can cause massive debt

It is supposed to be a book of information designed to help those who need medical care find the right professional. Not only does it have a list of medical providers and their contact information, but the list is supposed to include those who are covered within your insurance.

The whole point is to eliminate the headache of finding a doctor covered by your plan, right? Well, maybe not.

Unfortunately, these directories are not always kept up to date. This can result in a patient seeking care from a physician who is not within his or her plan. Care outside of coverage can result in bills - big bills.

Are you eligible for Chapter 7 bankruptcy?

While you may have considered filing for Chapter 7 bankruptcy as a way to wipe out some of your extensive debt, not all people are eligible for this form of debt relief. At Ledford, Wu and Borges, LLC, we know that in order to qualify for this chapter of bankruptcy, Illinois debtors must meet certain criteria.  

According to U.S. Courts, you may be able to file for Chapter 7 bankruptcy if you meet the following conditions:

  •          You have not filed for bankruptcy within 180 days and had that bankruptcy thrown out because you did not show up to a court hearing or for any other reason.
  •          You have completed an approved credit counseling course within 180 days of filing for bankruptcy.
  •          You are not filing as a corporation or partnership.

Managing the high cost of bankruptcy

Bankruptcy is designed to help people, who have been overwhelmed by debt, manage their financial burdens. In some cases, debtors can emerge from bankruptcy with a clean financial slate. Some people, however, may be unable to afford the cost of bankruptcy itself. The truth is, filing for bankruptcy can be pricy, and the cost may deter people from starting bankruptcy proceedings. In addition to the fees and costs of filing the bankruptcy paperwork with the court, there are often attorney’s fees involved. In some cases, these fees can amount to thousands of dollars. This leaves many people wondering how they can come up with this money when they have no money to pay their debts in the first place.

Debtors have several options when it comes to accumulating the money needed to file for bankruptcy. Depending on which chapter of bankruptcy you are planning to file, you may want to stop making payments on your credit cards. Since you are attempting to discharge the debt, you can take the money that you would use for the monthly payments and put it toward obtaining an attorney. Keep in mind that once you file for bankruptcy, an automatic stay will keep creditors from harassing you with constant calls and correspondence.

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