Many businesses have had to shut down or throttle back due to Coronavirus. For many business owners and their employees these weeks and months of lost or significantly reduced income equates to economic insolvency. Hopefully, the spread of Coronavirus will continue to flatten in Illinois, businesses will reopen fully, and employees will return to work soon. However, there is a possibility that will not be the case.

The attorneys at Smith Law, Ltd., are knowledgeable in assisting those with financial problem with the goal to avoid Bankruptcy and we strongly encourage people to do their best to manage their budget by finding ways to reduce their expenses. The decision to file for Bankruptcy should be the last resort in searching for a solution to economic instability. We can provide counseling and assistance in avoiding bankruptcy and future financial difficulties.

How Can Chapter 7 Bankruptcy Help?

A Chapter 7 Bankruptcy can eliminate debts that are no longer feasible to maintain. Most unsecured debts are dischargeable including debt from credit cards, medical expenses, and pay-day loans. Chapter 7 Bankruptcy also provides the opportunity to surrender property that is no longer affordable to finance, like a boat, a second vehicle, or a vacation home. Eliminating these debts will reduce expenses, possibly providing for a manageable budget.

Sometimes Chapter 7 Bankruptcy isn't a good fit for those seeking debt relief. The U.S. Bankruptcy Trustee has established an income cap for those eligible for Chapter 7 Bankruptcy. Also, there is a limit to how much property can be protected in Chapter 7 Bankruptcy. If the petitioner does not wish to surrender property that cannot be protected, he or she can pay back the value of that property through a Chapter 13 Plan. Finally, mortgage arrearages cannot be cured in a Chapter 7 Bankruptcy; however, they can in Chapter 13 bankruptcy.

How can Chapter 13 Bankruptcy Help?

A Chapter 13 Bankruptcy is a repayment plan that can help the petitioner get caught up on debts secured by property (i.e. mortgage, car note, etc.). If economic hardship has created a threat of foreclosure or repossession, then Chapter 13 can stop that threat.

Bankruptcy is a driven practice for an experienced debt relief attorney, like those at Smith Law, Ltd. Because there are so many nuances in the application of bankruptcy law, it is inadvisable that an individual not experienced or knowledgeable about Title 11 of the U.S. Code and how the courts have interpreted those laws, to file bankruptcy without the assistance of counsel.

If you would like to speak to experienced debt relief attorneys, please contact Smith Law, Ltd.

We are a debt relief agency. We help people file for bankruptcy relief.