Bankruptcy in America has been on the rise since the financial crisis upended so many individuals and businesses. Taking on a significant amount of debt was common during the days of the early 2000’s and people felt justified in banking that their job, business, and other investments would remain secure enough to allow a certain level of expenditures. When the bubble burst, those mortgages, student loans, long-term leases, and credit card debt became extraordinarily difficult to pay off. For those who lost a job, switched to a job with lesser pay, had their hours reduced, had a business fail, or have been unable to find work out of school bankruptcy has been an option that offers a fresh beginning.

The challenges on the road to recovery may seem daunting, but there are many things you can do to get your financial status back on track. The following tips can help if you are currently recovering from bankruptcy:

Don’t try to do everything yourself: Seek help! There are many for-profit and non-profit local financial counseling organizations all over the country that can provide support and strategic advice. Additionally, online and local communities of people going through the same thing can be a useful outlet.

Examine what caused the bankruptcy and address any issues: It is crucial to develop a plan to both recover from bankruptcy and stay out of trouble in the future. Make sure you tailor any plan to fit your situation. Creating a new budget, starting a career development plan, and looking for different types of employment may put you in a better position to avoid future financial turbulence.

Set goals: The road to recovery might mean striving to establish a solid credit score, reducing spending, or paying off all debts. Setting goals give you something to work towards, and can help you stay motivated, giving you a sense of accomplishment when you achieve your goals.

Pay your bills on time: Improving credit is a big part of recovering from bankruptcy. Your bill-paying habits account for approximately 35% of your credit score, which is the single biggest factor in what determines a score. This means that making on-time payments is an effective way to improve your score over time.

Watch out for predatory lenders: Bankruptcy in America sometimes means that certain lenders will specifically target you, as a bankruptcy filer. This is why recent filers should be wary of deals that sound too good to be true and/or carry high interest rates. You may be so eager for credit approval that you agree to contracts with high interest rates, but this is risky and may lead toward the same situation you went through bankruptcy to escape.

Keep an eye on your credit score: Recovery from bankruptcy definitely does require some initiative on your part. Be aware that your credit score may contain old or inaccurate information, which can affect everything from job applications to car loan rates. Removing incorrect information could improve your score in surprisingly significant leaps and bounds.

Re-establish credit: A strategic move, such as taking out two credit cards, buying a limited amount of items with them, and paying them off fully each month will improve your credit score.

Stay positive: This is a fresh start. You have escaped that cloud hanging over you and you now have an opportunity to start over. The good news is, once debts are cleared, most people's credit improves after filing for bankruptcy. Bankruptcy can affect lenders view of you as a risk, but they will also note your lack of debts, and many will give you a chance. Stay focused and stay positive, you are on the road to recovery!

Recovering from bankruptcy in America is a process. Don’t get discouraged- there are plenty of good people in the same boat, and the bankruptcy system is there to help people get out of tricky financial situations. Chang & Carlin, LLP can assist you with your bankruptcy legal services, and work with you on the road to recovery from financial turmoil. We offer reasonable fees to meet your legal needs while filing for bankruptcy. Our goal is to improve your financial outlook. Request a Free Bankruptcy Filing Consultation today.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

If you are closing a business due to bankruptcy, it is important to know your options. Eight out of every ten business owners will face serious financial problems at some point. Financial issues can occur for many reasons, whether it is the overall economy or a poorly conceived business strategy, there are really only 3 viable choices for a business when facing the financial crunch:

• Find a way to secure more financing
• Default on your loan
• File for a business bankruptcy

Going bankrupt is the simplest way to escape those relentless creditors, but it creates a red flag for your future financial endeavors and hurts your credibility as a business owner. Unfortunately this can lead to both business and personal issues down the road.

If you are closing a business and going bankrupt, you can file under one of three chapters of bankruptcy - Chapter 7, Chapter 11, or Chapter 13. In some cases your business must shut down during bankruptcy, while in other cases your business may remain open. Bankruptcy may be a way to get out of an oppressive lease and provides an orderly way for closing a business. While it can create a black mark on your credit score, filing for bankruptcy does not stop you from trying again and starting a new business in the future.

The following are the different types of bankruptcy and how they could apply to you if you are closing a business:

Chapter 7 This chapter is available for those businesses that are closing permanently. Although valuable assets may be liquidated and used to pay off the debt, this chapter of bankruptcy releases the filers from any obligation to pay. Chapter 7 is available to any type of business.

Chapter 11 Since corporations do not qualify for a Chapter 13, Chapter 11 is available, allowing businesses to reorganize debts and gradually pay them off. Businesses can even remain open during the bankruptcy process while they pay off their debts, and have 6 years to do so. Chapter 11 is available to any business, including corporations.

Chapter 13 Sole proprietors can file for Chapter 13, although they must file as individuals with business debts for which they are personally liable. Upon filing, an automatic stay is initiated, which prohibits the creditors from making any attempt to collect their debt, including starting foreclosure and repossession. Corporations may not file for Chapter 13.

You may have to close your business down if you file for Chapter 7 personal bankruptcy. However, you may be able to keep your doors open if you own an LLC or corporation with the other Chapters, even if you’re liable for a significant portion of its debt.

Even though bankruptcy is federal law, and most states have similar procedures on handling bankruptcy, bankruptcy filing law differs from state to state.This is why it is a good idea to always consult with a bankruptcy attorney from the state where your case is taking place.

The lawyers at Chang & Carlin, LLP are sensitive to the difficult decision you may be facing and are here to help you through this tough financial and personal time in your life. If you are considering closing a business and going bankrupt, let us help you determine what your options are and create a road map to guide you through the process of getting the best results possible for you and your business.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

As a Chicago bankruptcy attorney, I hear complaints about debt collectors on a regular basis from my clients. And while some debt collectors are allowed to contact you, many use illegal tactics in doing so, and you may be able to collect money due to their illegal actions according to the Fair Debt Collection Practices Act.

If a debt collector (someone from a collection agency to whom your debt was sold and not the original creditor such as Chase or Citibank themselves) is contacting you by phone, he cannot call you before 8 am or after 9 pm. Even when calling within these hours, a persistent debt collector cannot harass you or use vulgar language towards you, which includes insulting your character or using religious or ethnic slurs.

In addition, if you have a Chicago bankruptcy attorney and you have told the collector this on a previous call, the collector has to call your attorney instead of you. They also cannot threaten to sue you if they have no intention to do so, and in most circumstances they cannot threaten to have you arrested for the debt.

Many times, very aggressive collection agencies will try to circumvent the law in order to get you to pay up and if they do this, you should contact an attorney to get you the compensation that you deserve for having to put up with their abuse emotionally. While the debt will still have to get paid, this may alleviate some financial burden and it may even help pay the debt off. This is especially true if you do not owe the debt as many “collection agencies” are actually scams in themselves.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

Every Chicago Bankruptcy Lawyer offers services a little differently but there is definitely an outline of services that you should receive for your cost.

1. Free case evaluation to meet with the Chicago bankruptcy attorney.
2. First client meeting and financial evaluation
3. Administration of a 'means' test to determine if you are a candidate for bankruptcy.
4. Recommendation of chapter 7 or chapter 13 bankruptcy depending on your financial situation.
5. Attendance of creditors meetings and all other necessary meetings during the bankruptcy case.
6. Availability to answer questions and provide guidance as necessary throughout the case.

Ultimately it may not be imperative for your attorney to attend the creditors meeting but it is a service you may want included. If you get a great rate on lawyer fees but the attendance of the creditors meeting isn't included you may have to pay extra if you want them to join you. It is important to find out what is included in your Chicago bankruptcy lawyer's fee upfront and request any additional services you want that are not provided.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.

Life is full of decisions. When people are suffering financially they will probably seek out every possible option before admitting defeat and succumbing to filing bankruptcy.

If you file chapter 7 or chapter 13 bankruptcy the cost of court fees combined with legal fees will probably fall somewhere between $2,000 and $4,000. Chapter 7 filers will pay in the lower range while chapter 13 filers will pay more.

It is not surprising that some may consider cutting out the attorney fees included in this cost. Filing for bankruptcy means you can't pay your bills, how can you pay thousands in legal fees to declare bankruptcy?

Sure, people have started doing their own taxes rather than hiring an accountant and that goes smoothly for some but a serious legal matter like bankruptcy is very different.

It is also important to remember what you are gaining when you file bankruptcy. You are being saved from paying back a significant amount of debt that you have accrued. The cost of a qualified bankruptcy attorney is nothing compared to the fresh start that bankruptcy brings. The services of a Chicago bankruptcy attorney are invaluable. Here are just a few of the things they handle in your bankruptcy case:

1. Determine if you qualify for bankruptcy and administer a 'means' test
2. Help you explore other options if there is a chance you don't have to file bankruptcy
3. Organize and prepare all the bankruptcy paperwork
4. Act as your legal representative

Ultimately a bankruptcy attorney will make sure that the process flows smoothly. When you file for bankruptcy the last thing you want to do is delay the process. Hiring an attorney will help things be well organized and move quickly.

DISCLAIMER: All information on this website are provided for informational purposes only and are not intended to be construed as legal advice. Chang & Carlin shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.