As a business owner or individual, there are times when debt can become overwhelming leading to insolvency. If you have reached that pint whereby you can no longer manage your debts, the only way out could be filing for bankruptcy. Under the bankruptcy laws, property owners are offered protection from their debtors as they come up with a plan on how to repay their debts. If you are considering filing for bankruptcy, the first step should be hiring a Bankruptcy Attorney in Chicago. Here are some things you need to know about the process.
What you will gain from filing
Bankruptcy is not a perfect solution to debt issues. However, it is better than lawsuits or losing everything to auctioneers.
* You will get protection from your creditors. Thus, they will not be able to legally collect the debt you owe them unless it is under an agreed repayment plan.
* You will have a chance to salvage some of your personal property. For instance, when you file for a chapter 13, it is possible to avert a looming foreclosure. It is also possible to have some of the mortgages written off in a process known as lien stripping.
* You will receive the financial skills you need to manage your finances better when you attend the compulsory debt counselling classes.
What you should know before filing
As mentioned, bankruptcy isn’t the best way out of debt and should be thought of only as a last resort. Here are some things that you have to compromise by filing:
* Your credit score: A bankruptcy will appear in your credit scores for a long time after the dust has settled on the issue. It may affect your ability to borrow in the future.
* Credibility: If you have business partners, you have probably established a relationship of trust with them. Filing for bankruptcy will put you in a negative light in terms of being a credible businessperson.
Despite these challenges, you can still hire a Bankruptcy Attorney in Chicago, and successfully go through a bankruptcy case. With a lawyer’s guidance, the process will be a little simpler. Visit our website for details.
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