A Great Chicago Bankruptcy Lawyer Won't Encourage You To File Bankruptcy

09-Feb-2011 The State of Illinois, including Chicago, has seen a major increase in bankruptcy filings in the past couple of years. This is due primarily to economic hardships such as job loss, foreclosure, adjusting mortgage rates, and increased debt. Due to these hard times many people have sought out the assistance of a Chicago bankruptcy lawyer.

Unfortunately there are some Chicago lawyers out there who will push you to file for bankruptcy when it is not actually the best choice for your situation. Assuming you've contacted them soon enough they should explore all options to help you avoid bankruptcy.

The most common forms of bankruptcy are chapter 7 (best for people in truly dire situations) and chapter 13 which incorporates a 3-5 year payment plan towards your debt before discharging you. With chapter 13 you will need a steady income but are likely to be able to keep you assets.

Choosing the best type of bankruptcy will depend on several factors. For example, someone with extremely high credit card debt and no assets would want to file chapter 7. However someone with minimal credit card debt but significant secured debt such as a home and car might fare better with chapter 13. These are things your Chicago bankruptcy lawyer will help you navigate.

Additionally there are people for whom bankruptcy really does not make sense. Someone with a lot of student loans and a small amount of credit card debt may be feeling overwhelmed and seek the advise of a bankruptcy attorney. It would be unethical for an attorney to suggest that this person file for bankruptcy because student loans are debts that will not be discharged through bankruptcy. The same can be said for child support and taxes owed to the government. If these are your major debt then filing bankruptcy will not help very much.

A good bankruptcy lawyer will also suggest solutions such as loan modification, debt settlement or calling credit card companies to negotiate a payment schedule. Simple solutions like this can keep bankruptcy off your credit report.

You should beware of a lawyer who does not seek all possible options before filling out the bankruptcy paperwork. Most Chicago lawyers offer a free consultation during which you can get a feeling for how hard they are willing to work to help you and protect your financial reputation.

If it is determined that bankruptcy is the best fit for your situation, do not despair. If you work hard to improve your credit after bankruptcy you may be able to apply for a home loan with confidence in as little 2 years.

Finding a lawyer you can trust is key. Meet with as many lawyers as necessary until you find one that is highly recommended and will work hard to help you avoid bankruptcy.

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.