Another “quick fix” illusion people are using short term loans such as payday or title loans to pay off debt instead of hiring a bankruptcy attorney Chicago. This is probably the worst thing people could do. Not only are they transferring debt from one creditor to another, they must now pay high interest on that debt in order to eliminate it. In the end, they are paying roughly $18 in fees for every $100 borrowed, every 2 weeks.
In the end, filing bankruptcy is the only true solution for eliminating debt. It’s backed by the power of the United States government. For consumers, there are 2 chapters to choose from, depending on their particular financial situation. The most common is a Chapter 7 bankruptcy, otherwise known as a “fresh start” bankruptcy. It allows debtors to eliminate most or all of their debt and get a fresh start on their financial future.
The second type of bankruptcy is a Chapter 13, also known as the “house saver” bankruptcy. It allows someone who owns a house, but has fallen behind on their mortgage and bills, and takes their debt and puts it in to one payment, payable over 30 to 60 months. It saves your house from foreclosure, and could have other benefits supported by sound bankruptcy advice.
For specifics on each type of bankruptcy you should consult with a licensed, reputable Chapter 7 bankruptcy attorney. You will sit down in a one-on-one consultation and go over your particular financial situation. You must meet certain guidelines in order to file, in addition to other requirements. Your attorney will go over these with you.
The process of filing begins with making the decision to file. Making this decision will be easier from some people than it is for others, but in any case, filing for bankruptcy has many benefits that only bankruptcy can give. For example, once filed, bankruptcy prevents creditors from contact you or trying to collect on any of your existing debt. It’s as if a giant weight has been lifted from your shoulders and you’ve been given the freedom to live your life again. Make sure you explore all of your bankruptcy options when you are ready to actually file.
Once the decision has been made to file, the first step is to begin looking for an attorney to represent you. Bankruptcy is a complex process and should be done with a licensed, reputable bankruptcy attorney. The perfect bankruptcy attorney is one who has had years practicing bankruptcy. While researching your attorney, make sure you include getting references from them and their practice. The relationship you will have with your attorney should be treated no differently than the relationship you have for a doctor or dentist – trust, respect, and openness. Remember, you’re making a decision that will have a lasting impact on your financial future and its health.