Illinois Bankruptcy Lawyer

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There are nearly 200,000 bankruptcy filings occurring each year in Illinois, as businesses and individuals find themselves in difficult financial situations. For some, bankruptcy protection may be the best answer. To determine whether or not it's the right answer to your financial problems, you need to contact a qualified Illinois bankruptcy lawyer attorney.

Bankruptcy is the legal inability to pay debts. It is highly recommended that you hire a bankruptcy lawyer or attorney to help you with your case especially if you own a business and have valuable assets. Since 2005, strict bankruptcy laws have been enacted that make the process of filing, especially as an individual, complicated and difficult.

An Illinois bankruptcy lawyer or attorney can not only help you decide whether bankruptcy is right for you, but he or she can also help you decide which type of bankruptcy to file for. There are several kinds, but Chapter 7 and Chapter 13 are the most common. Under Chapter 7, more of your debt will probably be discharged, but you will be forced to sell any assets you may possess, such as a car or a home, in order to pay your creditors. In Chapter 13 bankruptcy, you may retain your assets but will have to pay more of your debt, usually in installments or regular payments. Your bankruptcy attorney will help you to negotiate a payment plan with an Illinois bankruptcy judge and your creditors.

In Illinois there are certain bankruptcy exemptions, which is a list of the kinds and values of property that creditors or bankruptcy trustees are legally unable to reach. The debtor is allowed to keep the property that is considered exempt, and what is exempt and the amount that is exempt varies from state to state. For the homestead, real of personal property or mobile homes are exempt up to $15,000. Prepaid tuition trust funds, pre-need cemetery sales funds, care funds, and trust funds are exempt. A motor vehicle is exempt up to $2,400. Clothing, health aids, family pictures, bibles, and school books are all exempt, as well as personal injury recoveries up to $15,000. Any personal property up to $4,000 is exempt. Wages that are exempt are either a minimum of 85% of earned but unpaid wages, or 45 times the higher of the state and federal minimum hourly wages. Pensions and tax exempt retirement accounts are exempt, as well as aid to the aged, blind, and disabled, Veterans' benefits, Social Security, unemployment compensation, restitution payments for WWII relocation of Japanese Americans and Aleuts, and workers' compensation and worker's occupational disease compensation are all exempt. Alimony and child support that is needed for support and life insurance are also exempt.

In fact, your bankruptcy lawyer will walk you through the entire process, from beginning to end. He or she will ensure that your rights are protected as you attempt to discharge your debts. A bankruptcy lawyer will also explain the risks and benefits of bankruptcy to you, so that you understand exactly what you are getting into.

Bear in mind that bankruptcy does come with some negative effects, particularly on your credit. Your credit report may suffer for seven to 10 years after your bankruptcy, so it is not something that should be taken lightly.

In 2008 a cumulative 54,793 individuals filed for bankruptcy in Illinois, 69% of them for Chapter 7 and 31% of them for Chapter 13. If you are ready to contact a Illinois bankruptcy lawyer or attorney to explore your options for debt relief, visit the American Bar Association ( ABA ) website. The ABA features a lawyer locator, which allows the user to search bankruptcy lawyer profiles in Illinois. Access to the site and profiles is free. More people will be begin to file for bankruptcy as their financial situations worsen, and the need help to get them through the process and onto recovery.


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