Not everyone in debt needs to file for bankruptcy. Another option and I recommend this as an East Dundee bankruptcy attorney in certain cases where people are collection-proof is to not make any payment whatsoever. In certain circumstances if you do not have a job and if the income that you have is protected then creditors really cannot collect upon you.
Now these creditors can harass you, they can send you letters, they can take you to court and obtain judgments, they can even make you come into court what you have in terms of property and income; however, if the property is exempt, if the income is exempt, the collector cannot touch those funds per a Chicago bankruptcy lawyer.I see this on occasion with elderly people who have no longer income from a job but they have Social Security Income and they’re being harassed by a creditor. In many cases I will just allow them to continue to be harassed because the creditor cannot collect upon them. In fact, if the client is wise the client could send that creditor a letter under the Fair Debt Collect Practices Act which basically states that they do not wish to be contacted anymore with regard to that debt. The creditor still has the opportunity to file a lawsuit; however they cannot send any kind of collection letters to that debtor.
So those are some of the options that somebody can do if they want to try avoiding bankruptcy.
Of course people should look at all of their options, including bankruptcy, when they’re facing a debt problem. Chapter 7 provides for the fresh start, Chapter 13 provides for debt reorganization through a Chapter 13 trustee. When you meet with a bankruptcy attorney the bankruptcy attorney will be able to advise you as to the process under the different chapters and to whether or not you qualify for either or both chapters. In many cases you can get out of debt by paying less than the total amount is owed through a Chapter 13 debt reorganization. In many cases you can get out of debt completely by filing Chapter 7 bankruptcy; it really depends upon what type of debt it is.
Debts such as credit card bills, medical bills, personal loans and utility services are easily eliminated by filing a Chapter 7 bankruptcy. Debts like student loans, recent taxes, parking tickets, child support, alimony, maintenance and debts incurred by fraud are not eliminated in a Chapter 7 bankruptcy.
Make sure you’re honest with your attorney with regard to your debt, your income, your assets and your liabilities. It is from this information that the attorney will be able to provide legal advice to you as to how you should best proceed with handling your debt problem.