Chicago Bankruptcy Attorneys

Illinois Debt Relief Lawyers Here to Help You

In recent years, many individuals and families have faced extreme financial hardship that has led them to pursue bankruptcy. Bankruptcy provides relief from the overwhelming pressures of debt and a fresh financial start. At Anderson & Associates, P.C., we counsel clients on bankruptcy matters. We examine your financial situation closely and help you determine if bankruptcy is the right path for you and your family. Should you make the decision to pursue bankruptcy, we will advise and represent you throughout the process.

Types of Consumer Bankruptcy

There are many circumstances that can lead to financial distress including divorce, job loss, illness and the death of a loved one. When individuals are facing serious financial difficulty, there are two different types of bankruptcy they can pursue. Chapter 7 bankruptcy and Chapter 13 bankruptcy are similar in that they both provide relief from debt, but they operate in very different ways.

• Chapter 7 Bankruptcy – This is also called “straight” bankruptcy or “liquidation” bankruptcy. When you file for Chapter 7 bankruptcy, a bankruptcy trustee takes stock of your assets and debts. Any assets that are non-exempt and have value must be surrendered to pay towards your debt. (In most cases, all debtor assets are exempt or are not of value to creditors.) Assets used as collateral for a secured loan must be surrendered as well. At the end of the bankruptcy process, most debts are discharged.
• Chapter 13 Bankruptcy – This is also called reorganization bankruptcy. When you file for Chapter 13 you must first receive credit counseling. Then you must submit a detailed repayment plan for how you will repay your debts over the course of a three or five-year plan. When the term of the repayment plan is over, any remaining debts (with a few exceptions) are discharged.

At Anderson & Associates, P.C., we will explain the advantages and disadvantages of both forms of bankruptcy and help you decide how to best proceed. With the passage of The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), the eligibility requirements for Chapter 7 bankruptcy changed and those with higher incomes are no longer able to file for Chapter 7. In these cases, Chapter 13 may be your only recourse.

Bankruptcy Alternatives

For many people, bankruptcy is the lifeline they need to rescue them from severe financial distress, but it is not the right choice for everyone. We discuss all debt relief options with our clients including loan modifications and foreclosure and creditor negotiations. We make sure our clients have a big picture perspective on their financial situation and are able to make informed decisions about their financial futures.

To learn more about the bankruptcy process and how we can assist you, contact us to schedule a free consultation. Our Chicago office is located in the downtown Loop, and we have three additional regional offices throughout the Chicagoland area.