Bankruptcy Lawyer Des Plaines, IL
A Des Plaines, IL bankruptcy lawyer understands that one of the clients’ biggest concerns about bankruptcy is how the filing will impact their credit score. The truth is that dealing with overwhelming debt may have already had an effect. If you have been late with payments or have missed payments, or have high credit card debt, your credit score has likely already taken a significant hit. The following is a brief overview of bankruptcy and credit scores. For more detailed information, contact Therman Law Offices, LTD.
How Long Does Bankruptcy Stay on a Person’s Credit History?
There are two different types of personal bankruptcy – Chapter 7 and Chapter 13. A Chapter 7 bankruptcy involves liquidating any assets the person has in order to pay off debts. Any debts that are unable to be paid off are discharged and the person no longer owes the creditor a balance. Chapter 7 bankruptcy can stay on a person’s credit report for up to 10 years.
In a Chapter 13 bankruptcy, there will be a repayment plan the allows the person a few years to pay off their debt in monthly amounts they can afford. If there is any balance left over after the repayment plan has been completed, that debt is discharged. Chapter 13 bankruptcy typically stays on a person’s credit history for approximatley seven years.
Obtaining Credit After Bankruptcy
As a Des Plaines bankruptcy lawyer can explain, being able to get credit after a bankruptcy can be difficult because there are many lenders who will look at you as a high-risk borrower. If you are able to obtain credit, the terms usually involve very high interest rates on very low credit limits.
However, there are ways you can rebuild your credit that will help raise your credit score. Applying for a secured credit card is a good first step. With these types of credit cards, you are required to make a deposit in the amount of the credit line the lender is extending to you. For example, for a $200 credit limit, you would need to send the credit card company $200. Making payments on time and keeping balances low is critical to repairing your credit.
There are some lenders that may extend credit to you without a deposit, such as vehicle loans, however, the interest rate and terms will likely be very high.
Although it can be frustrating, paying your bills on time and keeping balances low will mean that your credit score will gradually begin to creep up and you will eventually see a favorable credit score.
Contact Our Office Today
If you are struggling with debt, contact Therman Law Offices, LTD to speak with a Des Plaines bankruptcy lawyer. We can even help those who are facing foreclosure and/or vehicle repossession. Call our office today for a confidential consultation and find out what type of legal options you may have to begin to ease these financial burdens.
Seeking the counsel of a reputable Des Plaines, IL bankruptcy lawyer can provide the expertise and support necessary to navigate the complexities of bankruptcy law. Facing financial distress can be a daunting experience, leaving individuals and businesses uncertain about their future. Whether you’re an individual struggling with mounting debt or a business grappling with insolvency, a qualified bankruptcy lawyer from Therman Law Offices, LTD can offer strategic solutions to help you achieve a fresh start and reclaim financial stability.
Understanding Bankruptcy
Bankruptcy is a legal process designed to provide relief to debtors burdened by overwhelming financial obligations they cannot meet. Bankruptcy laws are governed by both federal and state regulations. The two primary types of bankruptcy available to individuals and businesses are Chapter 7 and Chapter 13.
- Chapter 7 Bankruptcy: Also known as “liquidation bankruptcy,” Chapter 7 involves the sale of non-exempt assets to repay creditors. After liquidation, the remaining eligible debts are discharged, offering the debtor a clean slate to begin anew.
- Chapter 13 Bankruptcy: This type of bankruptcy allows individuals to reorganize their debts into manageable payment plans spanning three to five years. This enables debtors to retain their assets while working towards financial stability.
How a Bankruptcy Lawyer Can Help
Navigating bankruptcy proceedings requires comprehensive knowledge of the law and an intricate understanding of the legal system. A seasoned Des Plaines bankruptcy lawyer possesses the expertise and experience to guide clients through the process effectively. Here’s how they can assist:
- Personalized Assessment: Each financial situation is unique, and a skilled bankruptcy lawyer will conduct a thorough assessment of your finances to determine the most appropriate bankruptcy option for your specific circumstances. This ensures that the chosen approach aligns with your goals and long-term financial interests.
- Filing Assistance: Filing for bankruptcy involves extensive paperwork and adherence to strict deadlines. A bankruptcy lawyer can help you complete the necessary documentation accurately and on time, reducing the risk of errors that could potentially delay or jeopardize your case.
- Protection from Creditors: Once you file for bankruptcy, an automatic stay is imposed, which halts all creditor actions, including debt collection attempts, foreclosure, and repossession. A bankruptcy lawyer will ensure that your rights are protected throughout this process.
- Negotiation and Representation: If you’re facing Chapter 13 bankruptcy, your lawyer can negotiate with creditors to establish a manageable repayment plan. For businesses, negotiations with stakeholders may be necessary. Your attorney will represent your interests and advocate for fair and reasonable terms.
- Avoiding Pitfalls: Bankruptcy law can be intricate, and attempting to handle the process without legal counsel can lead to costly mistakes. A bankruptcy lawyer’s guidance can help you avoid common pitfalls and ensure your case proceeds as smoothly as possible.
When facing financial hardship, the decision to file for bankruptcy is not an easy one. However, with the assistance of a skilled bankruptcy lawyer, the process can be more manageable and less stressful. By leveraging their expertise, you can navigate the complex legal landscape, protect your assets, and work towards a brighter financial future. Remember, taking the first step towards financial recovery by seeking legal counsel can be the key to reclaiming control over your economic well-being. Contact a Des Plaines bankruptcy lawyer at Therman Law Offices, LTD today to schedule a risk-free consultation.
5 Essential Benefits of Hiring a Bankruptcy Lawyer in Des Plaines, IL
Financial challenges can happen when you least expect them to, as a Des Plaines, IL bankruptcy lawyer knows. When faced with such pivotal moments, having a seasoned bankruptcy lawyer by your side can be the difference between a fresh start and lingering uncertainty. Here are the five indispensable advantages of securing an attorney during these trying times:
Comprehensive Understanding of Legal Nuances
Because bankruptcy law is so intricate and complex, it can be difficult to thoroughly understand how it works. There are multiple chapters (Chapter 7, 11, and 13 to name a few), each presenting its unique blend of regulations, eligibility standards, and resultant outcomes. Making an erroneous decision in this realm can have significant repercussions. But with the guidance of an adept attorney, you’ll navigate this legal labyrinth with precision, ensuring every step taken aligns with your best interests.
A Fortress Against Creditor Harassment
The incessant calls, letters, and emails from creditors can be more than just annoying; they can be downright demoralizing. Persistent harassment from creditors is one of the biggest issues that many people with debt face. However, the moment you initiate a bankruptcy filing, an automatic stay is placed, legally halting most collection actions against you. Your attorney ensures this protective shield is in place, granting you the peace of mind you desperately need.
Maximized Asset Retention
A common assumption about bankruptcy is that clients must always forfeit their assets. On the contrary, with an astute legal strategy, you can safeguard many of your valuable possessions. Familiar with the exemptions available in the Des Plaines, IL region, a bankruptcy lawyer crafts a plan to ensure you retain as much as legally permissible.
A Pillar of Emotional and Objective Support
There is a lot of shame associated with filing for bankruptcy, as a Des Plaines bankruptcy lawyer is familiar with. Having someone on your side who is not only well-versed in legalities but also understands the emotional roller coaster is invaluable. Your attorney serves as a steady pillar, offering emotional reassurance while ensuring your decisions are made rationally and not clouded by heightened emotions.
A Roadmap for a Robust Financial Tomorrow
Bankruptcy involves several steps to complete, and life after bankruptcy can be difficult to navigate. Post-filing, the landscape can seem unfamiliar. This is where your lawyer steps in, guiding you on the path to rebuilding your credit, making informed financial decisions, and avoiding potential pitfalls that could jeopardize your newfound stability.
We recognize the weightiness of considering bankruptcy. Our dedicated and empathetic team offers more than just legal counsel; we offer a partnership. Residents and businesses of Des Plaines, IL can trust in our expertise and commitment to their cause. Embarking on the journey to financial recovery need not be a solitary endeavor. Let us walk alongside you, shining a light on the path ahead. If you or someone you know is grappling with the possibility of bankruptcy, don’t delay.Find out how you can obtain the legal help from a reputable Des Plaines bankruptcy lawyer like one from Therman Law Offices, LTD that you can count on by setting an appointment now.
Bankruptcy Infographic
What Can You Not Do After Filing Bankruptcy?
Filing for bankruptcy is a significant step that can provide relief from overwhelming debt, but it also comes with certain restrictions and responsibilities. Understanding what you cannot do after filing bankruptcy is crucial to ensure compliance with legal requirements and to make the most of the fresh start that bankruptcy offers. Here, we address some frequently asked questions about the limitations and obligations that come with filing for bankruptcy.
Can Debtors Incur New Debt Immediately After Filing For Bankruptcy?
After filing for bankruptcy, it’s generally advised to avoid incurring new debt until your case is resolved. Taking on new debt can complicate your bankruptcy case and may be seen as bad faith by the court. However, there are exceptions for essential expenses like medical bills or necessary repairs, but these should be approached with caution. If you need to take on new debt, consult with your Des Plaines, IL bankruptcy lawyer to understand the implications and ensure it won’t adversely affect your case.
Are Debtors Allowed To Transfer Assets After Filing For Bankruptcy?
Transferring assets after filing for bankruptcy can raise red flags and potentially be seen as an attempt to hide assets from creditors. The bankruptcy trustee has the authority to review your financial transactions leading up to and during the bankruptcy process. Any transfers made within a certain period before filing can be scrutinized and possibly reversed. It’s essential to be transparent about all assets and avoid making any transfers without consulting your bankruptcy lawyer to avoid allegations of fraud.
Can Debtors Continue Using Credit Cards After Filing For Bankruptcy?
Once you file for bankruptcy, your credit cards are typically closed, and you should refrain from using them. Continuing to use credit cards after filing can complicate your case and may lead to accusations of fraud, especially if the charges are significant. It’s important to rely on cash or debit cards for necessary expenses during this period. After your bankruptcy is discharged, you can start rebuilding your credit responsibly with secured credit cards or other credit-building tools recommended by your Des Plaines bankruptcy lawyer.
Is It Possible To Sell Property After Filing For Bankruptcy?
Selling property after filing for bankruptcy is generally prohibited without court approval. Any attempt to sell or dispose of property must be reported to the bankruptcy trustee, who manages your estate during the bankruptcy process. The trustee’s role is to ensure that all assets are accounted for and that any proceeds from the sale of property are used to pay creditors. Before considering the sale of any property, consult with your bankruptcy lawyer to understand the legal requirements and obtain the necessary permissions.
Are Debtors Allowed To Make Preferential Payments To Certain Creditors After Filing For Bankruptcy?
Making preferential payments to certain creditors, such as repaying loans from friends or family members, is not allowed after filing for bankruptcy. The bankruptcy code prohibits preferential treatment of creditors, meaning you cannot favor one creditor over others. Any payments made to creditors within a specified period before filing can be recovered by the trustee to be distributed equitably among all creditors. It’s crucial to follow the guidance of your bankruptcy lawyer to avoid any actions that could jeopardize your case.
Assistance From Our Firm
Filing for bankruptcy provides a pathway to financial recovery, but it comes with certain restrictions that must be adhered to. Avoiding new debt, refraining from transferring assets, not using credit cards, seeking approval before selling property, and not making preferential payments are critical actions to follow. Understanding these limitations and working closely with your Des Plaines, IL bankruptcy lawyer can help you navigate the process smoothly and ensure a successful discharge of your debts. If you have any questions or need assistance with your bankruptcy case, contact Therman Law Offices, LTD today to schedule a consultation. Our experienced team is here to guide you every step of the way toward financial stability.