FAQ for a Bankruptcy Lawyer in ChicagoFiling for bankruptcy can be an overwhelming process. Many people are dealing with this for the first time and don't know where to start. The following is a list of frequently asked questions about the bankruptcy process.
What is Bankruptcy?
Bankruptcy is federal court process to eliminate or repay debt. Consumers and business can file bankruptcy, which provides them with protection under the bankruptcy court.
What is the difference between Chapter 7 or Chapter 13 bankruptcy?
Also referred to as Liquidation Bankruptcy, Chapter 7 bankruptcy monitors the liquidation of assets and uses that money to repay creditors.
Chapter 13 Bankruptcy, or Reorganization Bankruptcy, requires coming up with a plan for repayment of creditors, which is then proposed to the court. Some debts may be paid in full while others can be dismissed or partially repaid.
How long will this affect my credit?
Both Chapter 7 and Chapter 13 bankruptcies will stay on your credit report for ten years.
Can filing for bankruptcy save my house?
Yes. Chapter 13 bankruptcies can include mortgage and car payments in the reorganization process. The creditor is expected to accept this payment plan in lieu of foreclosure or repossession.
I've heard I can file for bankruptcy on my own. Why do I need an attorney?
It is true, that you can file on your own. This is called filing pro se. Pro se filers will have to navigate the confusing court system on their own which can lead to an invalid filing and a void case, which would cause you to have to re-file and pay fees all over again. An experienced attorney can ensure that all documents are prepared and submitted properly and can advise you on the best course of action to protect your assets.
How long does the bankruptcy process last?
A Chapter 7 bankruptcy can be completed in as little as four months. A Chapter 13 filing will include long-term payments and can last as long as five years.
To learn more about the bankruptcy services offered at A Legal Source, call our office today and schedule a no obligation consultation. Find out why many people across the Chicago area are choosing a Legal Source to protect their assets and help get them out of debt.