Should I try a loan modification or file for bankruptcy with a bankruptcy lawyer in Chicago? That is a typical question that I receive when someone is seeking bankruptcy advice. Actually, you don’t have to do a loan modification. Doing a loan modification is good; however, no one is really talking about, “Do a Chapter 13.” Why not? Maybe it’s because of the stigma of filing bankruptcy. However, a Chapter 13 bankruptcy is going to tremendously help you out. Will bankruptcy help you? Yes, it’s definitely going to help you, especially a Chapter 13 because Chapter 13 is going to allow you to pay back those mortgage arrears for three to five years at a set payment plan for every month in the Chapter 13 plan, and you will no longer be in default with your mortgage company. Once you file your Chapter 13 bankruptcy and you start making your payments towards those arrears, you’re basically back to square one with your mortgage company, and you pay your mortgage arrears through the Chapter 13 plan and then pay your regular monthly mortgage outside the plan, and you essentially save your house.
Chapter 13 is going to stop all the foreclosure. It’s going to stop your foreclosure issues; it’s going to stop all the calling. Same situation with your car. If you want to keep your car (has sentimental value, whatever the situation may be), your bankruptcy Chapter 13 is going to save your car in the same situation. And not only is it going to save your car, it’s also going to lower your percentage. Your Chapter 13 bankruptcy is going to lower your interest rate percentage on your car. So if you had a car that had a 25 percent interest rate that could be lowered to five percent or lower. It really depends on the situation. But we could definitely make sure that there would be a decrease in your interest rate for your car in a Chapter 13 bankruptcy. Paying your car through a Chapter 13 payment plan is one of your bankruptcy options.
So bankruptcy is really a helpful tool, and it’s something that I don’t think people understand as much as people should understand. It’s not widely talked about as much as it should be, especially in today’s economy, not just today’s U.S. economy but the global economy. No one knows, no one can predict the future, no one can predict when the economy is going to bounce back. Hopefully, it will be soon. However, for those people who’ve lost jobs, who’ve lost a lot of money in the stock market and they don’t have a lot of money for their retirement accounts and they’re on a fixed income with Social Security and the credit just keeps on piling up because of interest, these are things that are going to be eliminated, including your stress. Although there are alternatives to bankruptcy, I strongly advocate the use of Chapter 13.
Stress is the biggest issue. If you don’t file for bankruptcy and you have creditors coming after you, they will find you, they will sue you, they will serve you, they will start garnishing your wages, they will start freezing your bank accounts, and they don’t stop. This is the one thing that creditors do is they do not stop coming after you. So in order to stop them from coming after you, bankruptcy is very helpful if you cannot negotiate with creditors. Bankruptcy is going to help out. It’s a great tool for anyone, and it really is a right that everyone should exercise if they need it. It’s a personal right that you should exercise as an American and to help you out, to relieve your stress, and to start fresh, start new, and have a new life. Look into speaking with a Chicago bankruptcy lawyer as soon as you get the chance.