Attorney Mark Heimsoth understands it can be difficult to function normally when creditors are constantly harassing you, especially when you do not have the money for which they are looking.  Fortunately, since the establishment of our country and our constitution, the United States Government has always provided people a chance to get a fresh start by filing for bankruptcy when other financial options have run out. As a bankruptcy attorney, he can assist you in evaluating your financial situation to help you decide which options work best for you and when necessary, assist you in filing for relief under the appropriate section of the Bankruptcy Code.

What is bankruptcy?                                                                         

·        Filing Bankruptcy in Illinois

            Bankruptcy is a procedure overseen by the Federal Bankruptcy Courts.  It is not a state legal procedure.  Therefore, federal rather than state law governs the bankruptcy process.  Moreover, as you may have heard, a couple of years ago the law was revised in a way that generally favored creditors.  However, despite this revision, for most people facing severe financial challenges, it remains a viable legitimate alternative.

            Many people experience financial difficulties at some point in their lives.  While filing for bankruptcy is not the right choice for everyone, in appropriate circumstances, it can provide a much needed fresh start.  Because of the fact that once you utilize bankruptcy relief, it will no longer be available for you to use again for a period of time, it is important to consult with an individual who can help you determine your possible choices of action.

            If you are behind on your car or mortgage payments, you are being sued, your medical bills have overwhelmed you, your wages are being garnished and you are receiving what seem to be multiple daily telephone calls from abusive creditors, you should consider bankruptcy.  In doing so, you should be aware that no matter what the type of bankruptcy you elect to choose, you will never loose all of your property.

            In a bankruptcy most debts are dischargeable, but there are some debts that are not dischargeable and will have to be paid.  Likewise, there is some property that you may lose, but there is other property that cannot be taken from you.  An attorney can help you make these determinations and guide you through the process.

·         Chapter 7 Bankruptcy and Chapter 13 Bankruptcy

The most common forms of bankruptcy relief for individuals are Chapter 7 and Chapter 13 under the Bankruptcy Code.  The Code also has other chapters which deal specifically with farmers, businesses, and others.  A Chapter 7 Bankruptcy is known as a fresh start bankruptcy and it allows a person to discharge most or all of his or her debt.  The Chapter 13 Bankruptcy creates an affordable repayment plan and allows an individual to make monthly payments and keep more of his/her property.  A Chapter 13 plan requires an individual to have consistent monthly income.  Most importantly for those whose creditors are harassing them, upon the filing of either of these types of bankruptcies, all creditors must cease their collection efforts and any dispute about the debt and it’s dischargeability is handled by the Bankruptcy Court.

·        Which should I choose?

How do you make the choice of a Chapter 7 or a Chapter 13 Bankruptcy?  Some of the bankruptcy rules and regulations limit people with too many assets or too much income from filing a Chapter 7 Bankruptcy.  One of the roles of the bankruptcy attorney is to help you determine which type of bankruptcy to file, a “fresh start” bankruptcy or a “debt consolidation-repayment plan” bankruptcy.

Filing bankruptcy is a personal decision.  There are many factors to consider.  However, many of the myths that you hear are not true.  You can get credit after filing.  You can often keep your car and home.  Attorney Mark Heimsoth can explain all of the factors when deciding if filing bankruptcy in Illinois is right for you.  CONTACT him today to discuss your case.


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