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It really is terribly stressful for families that have been struggling with debt and past due bills to arrive at the understanding that they might be in a financial condition which ıs not going to simply fix itself. While this type of situation can seem quite hopeless, there is a way out that the law offers that will help individuals get out from underneath the burden connected with overwhelming debt. In my Chicago bankruptcy law office, I help families to determine whether the choice to seek bankruptcy relief is appropriate considering their particular problems.

Some individuals think that changes to the bankruptcy law that were handed down in the year 2005 have made it almost impossible for individuals to meet the criteria for debt elimination with the aid of consumer bankruptcy. Even though the 2005 law, the Bankruptcy Abuse Prevention and Consumer Protection Act, or BAPCPA, has made it more difficult, the reality is that most consumers who need to file for consumer bankruptcy can continue to do so.

So exactly what is bankruptcy? Generally speaking, bankruptcy is a legal proceeding that permits individuals with more debt than they’re able to repay to start over – in financial terms. This is the reason why bankruptcy is known as a “fresh financial start.” Once you file for bankruptcy, lenders have to immediately stop attempting to recover the debts that you owe. Based on what bankruptcy chapter someone files under, the majority of unsecured debt can be cleared – removing the legal responsibility to repay them. Unsecured debts are the type without any collateral, for instance credit cards. Secured debts, such as auto loans and home mortgages, must be repaid if the person wishes to maintain the property. However should they be behind on monthly payments, filing for bankruptcy will be able to prevent a repossession or foreclosure by making it possible for the past due amount to be paid back gradually while the regular payments continue.

While there are different local rules and state laws that come into play in bankruptcy proceedings, the key source of bankruptcy law is Title 11 of the U.S. Code. As bankruptcy is federal law, bankruptcy cases are filed in the federal court for the district in which the debtor lives. For example, since I’m a Chicago bankruptcy attorney serving Chicago area people, my clients’ bankruptcies are filed in the United States Bankruptcy Court for the Northern District of Illinois.

One can find four different varieties of bankruptcy cases under Title 11: Chapter 7, Chapter 11, Chapter 12, and Chapter 13. Of these 4, Chapter 7 and Chapter 13 are the most common and most helpful to individuals. Chapter 7 is known as straight bankruptcy or a liquidation and calls for individuals to give up possessions to repay their creditors. Because of the numerous state and federal exemptions that provide protection to certain property from liquidation, the majority of people who file for Chapter 7 bankruptcy never lose any property whatsoever.

Chapter 13 is also known as a reorganization. Chapter 13 lets men and women to repay all or some portion of their debt over time by means of future earnings. No property is liquidated under a Chapter 13.

Even though this brief summary offers a simple overview, it’s not legal advice. Bankruptcy law is complicated and consumers contemplating bankruptcy ought to speak with an attorney in their jurisdiction. Should you live in Illinois and therefore are seeking a Chicago Bankruptcy Attorney, please consider The Law Office of John C. Kunes, P.C.

Looking to find helpful information about Chicago Bankruptcy, then visit www.ChicagoBankruptcyLawOffice.com to find helpful information about consumer bankruptcy from a Chicago Bankruptcy Lawyer.

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Many people are still reeling from the economic downturn and are wondering whether to file bankruptcy, and whether to file bankruptcy without a lawyer, seeing this as yet more expense.

I am not a lawyer, and am very concious of the sums they can charge, but in this instance with your financial future at stake and the complications of bankruptcy law, I would say unhesitatingly that a lawyer is essential.

There are various options open to you when declaring yourself bankrupt – the main options being what chapter to file under.

Chapter 7 is often the preferred choice as, despite having all your assets sold, you are left debt free (some debt cannot be written off) as opposed to chapter 13 bankruptcy, which is essentially a repayment plan over three to five years.

However, the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) changed the law to include a means test. This was to ensure that those who could repay in full (and the conditions can be quite harsh), did so.

This is one major reason not to file bankruptcy without a lawyer as the means test is complicated, and the result is far reaching.

You need to find a mid-sized law firm so that you always deal direct with your lawyer, not a paralegal, common in large firms. This is because your relationship with your lawyer is of the utmost importance, and there should be a free flow of questions and answers between the two of you.

Some lawyers tailor their rate to the amount you owe, others will charge a flat fee, which is the best way to go. A lawyer cannot be a creditor in a chapter 7 case, so the amount must be paid up front, as opposed to a chapter 13 case, where it can be included in your repayment plan.

Another area where a lawyer is important is at the “341 Meeting” or “Meeting of Creditors”. This meeting is called just after filing for bankruptcy.

Before the meeting you will need to draw up a list of creditors with details of how much is owed. You must also produce documented evidence of all your assets and their value, and any income you receive.

At the Meeting of Creditors, you are asked questions under oath, your financial details inspected and which chapter you should file under. It’s complicated and a lawyer should be with you to advise.

A lawyer is also able to give you sundry advice on less obvious things. For example you should not use a credit card for anything at all once bankruptcy is filed, as you are effectively spending money you know you cannot repay.

Bankruptcy is complex, and a lawyer is a vital investment.

This is just one area of declaring yourself bankrupt. For additional free information on various areas of bankruptcy, visit www.decalringyourselfbankrupt.org. You are welcome to reprint this article – but get your own unique content version here.

With the passing of the boom years and the entry into more recessive times, many people are finding life financially impossible – crushed by the wieght of debt taken on in the good years. No amount of loyalty to any financial institution has vlaue any more – they simply want their money. By declaring yourself bankrupt you can wipe away your debts and rebuild your financial position.

However, before declaring yourself bankrupt, you should examine every possible alternative avenue. Bankruptcy stays on your credit report for up to ten years, and under the Bankruptcy Abuse Prevention and Consumer Protection Act, 2005 (“BAPCPA”) it is now law that anyone filing for bankruptcy must, within 180 days of filing, attend US Trustee approved consumer credit counselling to ensure that all alternatives are explored.

If, after counselling, it is decided that bankruptcy is the only way forward, certain decisions have to be made.

Firstly, you have to decide which type of bankruptcy you are going to file under, the two most common being chapter 7 and chapter 13. Chapter 7 is often seen as the preferred option, but under the new BAPCPA rules, all applicants for bankruptcy have to undergo a means test, the result of which often forces individuals into chapter 13.

The second thing to consider is legal representation. Ironically, declaring yourself bankrupt is not an area where you want to save money. Lawyers are not cheap, but it is highly recommended that you hire one, and make sure they are aware of the laws in your state.

Thirdly, your application for bankruptcy can be quashed if you use your credit cards after filing for bankruptcy, due to the fact that you are running up credit that by definition (bankruptcy) you know you can’t repay.

“Automatic stay” is triggered when your lawyer files your bankruptcy case. Creditors then have to approach your lawyer direct regarding any debt, thus taking the pressure off yourself.

In order to check that you are being truthful regarding your financial position, you will be required to attend a meeting of creditors shortly after filing for bankruptcy. At this meeting you will be questioned under oath, so that both the court and creditors can be satisfied as to the veracity of your claimed financial situation.

Once your assets have been sold and the proceeds disbursed among your creditors you no longer owe anything, even if your assets were insuficient to cover all outstanding debt, (chapter 7 filing). A notice of discharge will be sent out after 60 days.

In a chapter 13 case, a repayment plan is implemented over a 3 – 5 year period in accordance with the findings of the means test. There are no assets sold. Notice of discharge is usually received 30 – 60 days after the last payment has been made.

For additiregardingal free informatiregarding regarding bankruptcy go to www.declaringyourselfbankrupt.org where you will find a lot of useful informatiregarding and tips regarding declaring yourself bankrupt. Grab a totally unique version of this article from the Uber Article Directory

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