Individual Bankruptcy

Nobody really sets out to file an individual bankruptcy case.  If anything, people struggle for years with debt and search for all kinds of alternatives to bankruptcy.  Some of the alternatives sound too good to be true and often, they are simply too good to be true.  One such alternative is to repay a portion of the debt through a debt settlement company.  I am sure that you have heard the advertisements on the radio or seen the push on television to get out of debt without the need to file bankruptcy.  The ad always asks if you are more than ten thousand dollars in debt.  There is a reason why they ask that questions.

The companies that I reference above are trying to do the equivalent of a Chapter 13 repayment plan without the need to actually file the bankruptcy case.  This assumes that all of your creditors are going to accept your repayment terms which are significantly less than the total amount owed.  If you talk with a Chicago bankruptcy lawyer, he will likely caution you that most of those arrangements fail.  For example, if you have four creditors and three agree to accept the repayment plan, the final creditor can forego the offer and file suit.  It can then obtain a judgment, garnish your wages and make your other payments falter.

There is one decent alternative and that is to make payment arrangements directly with your creditors.  This assumes that you have the disposable income per month to do so.  Most of my clients, who are seeking bankruptcy advice, simply do not have any disposable income per month.  Most of the people who wind up filing for Chapter 7 bankruptcy protection actually show a negative balance per month.  There is simply no way for most clients to make a positive arrangement with creditors.

Another alternative is to speak with an Illinois bankruptcy attorney.  It is possible that the attorney can hold off collection efforts simply by implying that you are considering bankruptcy.  Some creditors will be hesitant to file suit and expend costs against a debtor if the creditor truly believes that a bankruptcy case is imminent.  The attorney would probably charge a nominal fee to represent you in this regard.  Although this is a rare idea, the results can be tremendous.  For example, once you have retained the attorney, you can have all of your creditors direct correspondence through your attorney.  This will provided a relief from the creditors without the need to file for bankruptcy.