Proposed Changes To Social Security Make It More Important Than Ever To Avoid Bankruptcy

07-Jul-2011 Filing for chapter 7 bankruptcy Chicago means that you are accepting that you can no longer pay your bills and you are basically giving up your assets. Your home and car will be liquidated into cash that will be used to pay your creditors.

For many bankruptcy may feel like the only option as well as a quick fix for current financial woes. Unfortunately in today's economy nothing is guaranteed.

Americans have always seen Social Security as something that is promised to them, that they can count on. It was reported today that President Barack Obama has been involved with discussions of using social security to help reduce the nation's inflated deficit. It was reported by the Chicago Sun Times that the changes could include an increase in income taxes for many as well as slightly reduced benefits for millions of retired Americans. Current retirees collecting Social Security will not see a change however their future increases may be smaller. These changes are likely to effect low income and middle class families.

The Chicago Sun Times reports that this plan is being considered because it has the potential of saving $200 billion. The overall goal is to reduce the nation's deficits by $2 - $4 trillion in 10 years.

These discussions are significant because until now Social Security has been considered separate from the deficit and kept out of deficit reduction communications. Obama's fellow Democrats have voiced strong opposition to Social Security cuts.

Many Americans looking to retire count heavily on Social Security benefits. Besides Social Security they will rely on personal and professional retirement accounts as well as the income that can be generated from the assets they have obtained over the years.

If you are threatened with chapter 7 bankruptcy consider talking to your chicago bankruptcy lawyers about the potential of filing chapter 13 Chicago instead. Chapter 13 Chicago is commonly refereed to as "reorganization" while chapter 7 Chicago is called "liquidation". Their definitions are that simple. Chapter 7 liquidates all of your assets into cash to pay your creditors as much of what is owed to them as possible. Chapter 13 bankruptcy requires that you have a steady income and the discipline to make reduced payments towards your debts for the next 3 to 5 years. After completing your payment plan you will be discharged of the remaining debt owed on your assets.

Although chapter 13 bankruptcy in Chicago will still have a negative effect on your credit score and financial profile it is not quite as damaging as losing your home through chapter 7 bankruptcy.

Life is full of uncertainties. It is important that you protect you future by protecting your assets and investments. Chapter 13 bankruptcy can give you a fresh start while allowing you to hold on to your assets.


Chang and Carlin
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.