Bankruptcy Lawyer Champaign, IL
Bankruptcy Lawyer Champaign, IL
If you are considering filing bankruptcy, it is important to consult a skilled bankruptcy lawyer in Champaign, IL. Bankruptcy may be able to help you get a financial fresh start. Here are some frequently asked questions and answers about bankruptcy.
What debts can and can’t be discharged in bankruptcy?
Most unsecured debts, like medical bills, payday loans and credit card debt, can be discharged in bankruptcy. However, if you have secured debts, like student loans, child support or tax debts, you won’t be able to discharge them in bankruptcy.
What are the two types of bankruptcy?
People in debt have the option of filing Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy discharges your unsecured debts, but you may have to sell some of your assets in return. With Chapter 13 bankruptcy, you must pay back some or all of your debts through a repayment plan, but you can keep all your property.
A bankruptcy lawyer can help you decide on the type of bankruptcy to file.
How long does bankruptcy take to complete?
Chapter 7 bankruptcy typically takes between four and six months to complete. Chapter 13 bankruptcy, on the other hand, can take three to five years to involve.
Will filing for bankruptcy affect my credit?
A common concern people have about filing for bankruptcy is the impact it will have on their credit rating. It is true that your credit score will go down after you file for bankruptcy. However, you can start rebuilding your credit right away. A bankruptcy lawyer in Champaign, IL may advise you to apply for a secured credit first to slowly increase your credit score.
Will filing for bankruptcy stop creditors from contacting me?
Yes. Once you file for bankruptcy, the court will issue an automatic stay, which will prohibit creditors from calling you. If your creditors still attempt to contact you by phone or mail, you should inform your lawyer right away.
Can I create new debt before filing for bankruptcy?
No. One of the biggest mistakes people make before bankruptcy is making major purchases on their credit cards. If you charge a vacation or other big purchase on a credit card, it will not be discharged during your bankruptcy.
If you want to file for bankruptcy, you should schedule a consultation with a bankruptcy lawyer in Champaign, IL today.
