Bankruptcy can often provide the fresh start that one needs. It can be accomplished through the services of a Joliet bankruptcy attorney. The attorney may be able to assist with other chapters of the bankruptcy code as well. There are some attorneys that will only file a chapter 7 for clients and others that will file chapter 7 and chapter 13 cases. If you really want to specialize, there are attorneys that handle chapter 11 bankruptcy cases. Those are primarily set for businesses who wish to reorganize debt in an effort to stay afloat. For consumers, the most popular chapter is that of chapter 7.
Chapter 7 bankruptcy filings make up approximately 75% of all bankruptcy filings. They typically involve consumers although many businesses wind up filing for chapter 7 when they can no longer stay in business. There is an attorney fee and a court cost to filing any chapter of the bankruptcy code. If your case has an asset to be administered, the creditor may file a proof of claim bankruptcy. However, in most chapter 7 cases, there are not assets to be administered for the benefit of creditors. The debtor simply gains a fresh start and is free to accumulate wealth and property once again.
If the debtor lives in Chicago, the filing can be characterized as a Chicago bankruptcy. Although it not required to file in Chicago, most residents of Cook County will have to appear at a creditors meeting in downtown. The Trustee will ask the debtor a series of questions in an effort to determine whether or not the debtor has non-exempt assets that can be reduced to cash. If so, the Trustee will send notice to all creditors that there may be assets to administer. The creditors will then file a proof of claim with your Clerk of the U.S. Bankruptcy Court so that they can partake in any sale proceeds.
Keep in mind that Chapter 7 is not the only way to go and that there are other bankruptcy options. One such option is filing for Chapter 13 bankruptcy protection. This is also known as the home saver or reorganization type of bankruptcy. Creditors can receive either all or a portion of the amount owed over a period of three to five years. The amount of the repayment is determined in part by the debtor’s income, expenses, assets and liabilities. The higher the disposable income per month, the higher the monthly plan payment will be.