Filing for bankruptcy has been stigmatized by the society we live in. For the most part, bankruptcy is associated with failure and financial irresponsibility.
However, the truth is that even responsible, hardworking Americans can find themselves in a situation where they are struggling to make ends meet, let alone being able to pay off their mortgages and debts.
This can happen due to several unforeseen reasons such as medical emergencies, illness, accidents, loss of job, etc. When you are unable to pay your debt payments as stipulated in your mortgage contract it is likely that your creditor or bank will go ahead and file suit against you in order to initiate the foreclosure process.
This is when you need legal help. This is when you need to use this site to obtain the legal talent to help you dig yourself out of this unenviable situation. Do not worry, we have seen worse situations and we worked people out of those too!
What is foreclosure?
Foreclosure is essentially how creditors acquire and liquidate the homes of borrowers who have defaulted on their loan payments. Basically, they sell the defaulter’s home and the money that is acquired through the sale is then used to compensate for the outstanding debt, either in full or partially.
Obviously, to be faced with foreclosure means to be faced with the prospect of losing your house which can leave you and your family pretty much without shelter.
This is when filing for bankruptcy is another legal process which you can utilize in order to avoid foreclosure and the loss of your home. There are different types of bankruptcy filings, however, the most commonly filed for ones are as follows:
- Chapter 7 bankruptcy
- Chapter 13 bankruptcy
- Chapter 11 bankruptcy
- Chapter 12 bankruptcy
Chapter 7 bankruptcy
Chapter 7 bankruptcy is also known as a fresh start bankruptcy. It is given this name because it does offer the borrower a new beginning. If you qualify for a Chapter 7 bankruptcy and successfully file for it, then your loans may be completely voided. This means that you will not have to pay them back.
Credit card loans, personal loans, prior tax debts, etc. are all types of loans which may be discarded via a chapter 7 bankruptcy. However, not everyone qualifies for a Chapter 7 bankruptcy.
Generally, this is meant for low wage earners who simply have no way or income to be able to pay off their debts. This chapter of the US bankruptcy code is said to be the fastest form of consumer bankruptcy. This also allows the claimant to rebuild their credit score instead of being burdened by unaffordable debts.
Chapter 13 bankruptcy
People who do have a steady income source, however, will most likely not qualify for a Chapter 7 bankruptcy and instead may have to file for a Chapter 13 bankruptcy. Chapter 13 bankruptcy allows the consumer to negotiate with their creditors and agree upon a repayment plan which is more sustainable and bearable by the borrower.
If you have been burdened by loans that are getting out of hand, then filing for bankruptcy could potentially be the solution that could brings you immense relief.
Seeing the light
At USAttorneys.com, we can help you get connected with the most prolific Illinois bankruptcy lawyers in your county. Simply click on the interactive map or conduct a quick search via the local lawyers’ directory on the home page and you will be presented with the contact details of a list of standout legal counselors who you can call right away.
It’s that simple. If you happen to have any issues here, you can use the live chat forum or the contact page to send us your information. We will call you back and help you acquire the lawyer that you need right now.
Don’t make the wrong choice. This situation may not be your fault up and until now but if you try to be a legal pro when you are not and make a mistake you can be putting yourself in a worse spot. Everyone needs help once in a while. Join the club!