Chicago Bankruptcy Attorneys
Information on Bankruptcy
Although sometimes suing debt collectors is enough to get them to leave our consumers alone, there are cases when using the FDCPA to fight debt collectors just isn’t enough. When that is the case, as an option of last resort, we will consult with our clients about filing bankruptcy. Currently, less than .001% of our clients find it necessary to file bankruptcy and their individual goals are accomplished through fighting the third part debt collectors through the Fair Debt Collection Practices Act.
The most common type of Bankruptcy is Chapter 7
Chapter 7 Eliminates Unsecured Debt – A Chapter 7 provides forgiveness for your unsecured debt. Chapter 7 wipes out your unsecured debt and forces your creditors and collection agencies to provide you with a start fresh. Credit cards, medical bills, personal loans, payday loans, old utilities, repossessions, and broken leases are all examples of debts that literally gets wiped out through a Chapter 7 Bankruptcy. Although all of the benefits of Chapter 7 won’t be relevant for you, we’ll still take the time to cover them. If any area doesn’t apply to you, simply move on to the next section:
- Chapter 7 Stops Creditors From Taking Money From Your Paycheck – When you’re already pressed to make the monthly bills, the LAST thing you need is some collection agency taking money directly from your paycheck. A lawsuit, if the creditor wins, will likely result in your wages being taken to pay the debt, thus making an already tight situation nearly unbearable. A Chapter 7 bankruptcy prevents and stops your creditors from taking (also known as garnishing) your wages.
- Chapter 7 Removes Cosigner Liability – If you cosigned a loan for someone that stopped making payments it’s likely that the lender will send you to collections. A successful Chapter 7 Bankruptcy will remove your legal liability to pay for the applicable debt.
- If You Lost Your Drivers License, Chapter 7 Will Get It Back– Accidents happen and that is why we have insurance. Unfortunately sometimes accidents occur when your insurance lapsed. If the damage is severe, the cost of an accident could be tens of thousands of dollars. In addition to being responsible for this debt your drivers license will be suspended until you satisfy the debt. The Chapter 7 filing not only eliminates the debt, but also allows you to get your driving privileges immediately. However, we kindly request that you get insurance before hitting our streets again.
- Chapter 7 Stops Creditor Harassment – The Fair Debt Collection Practices Act only applies to third party debt collectors, not the original creditors. However, bankruptcy forces original creditors and debt collectors to cease communicating with you. As you probably know, some of the more ruthless ones will bother you at work, contact your friends and family, and even will threaten you if you don’t agree to send them a payment. All that stops with a Chapter 7 because original creditors and collection agencies are prohibited from contacting you after you file Chapter 7. If a creditor or collection agency contacts you after you file, our firm will go after them. As soon as you hire us, and even before you file, it’s likely that the number of telephone calls from debt collectors will significantly decrease.
- Chapter 7 Restores Your Credit – Many of our clients tell us that they are afraid to file bankruptcy because they don’t want to ruin their credit. However, most of the time delaying a necessary bankruptcy filing tends to be more damaging than actually filing the bankruptcy. Unfortunately, consumers will continue to have negative credit reporting activity monthly until they file. Furthermore, if you are sued, statistics show that a lawsuit and judgment against you can be THREE TIMES more damaging to your credit than a bankruptcy filing. If you’ve gotten this far on our website chances, are that either your credit is already bad or that it’s likely to take a nosedive shortly. As such, there’s a chance your credit score won’t be significantly affected by filing a Chapter 7.
So What’s The Catch? That’s the most common response we get during a bankruptcy consultation. People don’t believe that they can wipe out their bills AND simultaneously rebuild their credit quickly simply by paying an attorney to prepare and file some paperwork. There is no catch and the fact that it is so powerful might now explain why banking lobbyists have spent millions of dollars creating a stigma surrounding your legal right. Moreover, the government wants you to file so you can become a “consumer” again. America needs you to be able to buy new goods and services to pump our businesses with your money as opposed to paying off things you bought years ago. With that said, thanks to those banking lobbyists, not everyone qualifies for a Chapter 7 Bankruptcy. Contact us today if you have any questions about a Chapter 7 Bankruptcy.
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