What You Should Know About Bankruptcy
A chapter 13 lawyer Peoria IL clients trust understands that making the decision to file for bankruptcy will come with your fair share of questions. You will want to be sure that you have made the right decision for your future when it comes to bankruptcy.
Experiencing large amounts of debt that feels impossible to dig yourself out of can feel incredibly overwhelming. You may be surprised the sense of relief you may experience by choosing to file for bankruptcy. Many feel a weight lifted off of their shoulders as they have a chapter 13 lawyer Peoria IL families recommend guiding them through the legal process.
Each Peoria chapter 13 lawyer from Smith & Weer, P.C. can help answer any questions you have and facilitate the legal process, all while keeping your interests at the forefront. We have over 35 years of experience in representing bankruptcy cases for the people of the Peoria area. You will encounter many unknowns when enduring the bankruptcy process, having as much information as possible will help you feel prepared when filing for bankruptcy.
Chapter 7 Bankruptcy Facts
One form of personal bankruptcy is Chapter 7. Through this process, you will liquidate your assets, paying as much of your debt off as possible. This happens with a court appointed trustee who will disburse the assets to your creditors. Once this has occurred, most of the debt remaining will be discharged. It is important to note that there are some debts that cannot be discharged, this usually includes:
- Fines from breaking the law
- Child support
- Student loans
- Taxes (federal and state)
Filing for Chapter 7 bankruptcy requires that you meet certain eligibility requirements. Income is the biggest determining factor when it comes to qualifying for Chapter 7. People who make too much money to file Chapter 7 will usually file for Chapter 13 bankruptcy. In most cases, a means test is conducted to determine your debt to income ratio.
This process looks at your income over a long period of time and determines how much extra money you have at the end of each month. The more extra funds you have, the more likely you are to be required to pursue Chapter 13 instead. You will also have to show that you have gone through recent credit counseling as well. Your chapter 13 lawyer Peoria IL residents rely on can determine which form of bankruptcy is right for your situation.
Bankruptcy court will manage how your debt is paid off. This can be difficult as they will have control over your assets during this time. The trustee will schedule a creditors meeting where you and your creditors will meet and ask questions regarding your finances while you are under oath. Once the bankruptcy process is over, the court will discharge your debts. In most cases, you can expect a Chapter 7 bankruptcy to stay on your credit report for about 10 years.
Contact a Chapter 13 Lawyer Peoria IL Locals Turn To
A chapter 13 lawyer in Peoria IL knows that financial problems can impact nearly every aspect of a person’s life: stress levels, marriage, friendships, parenting, and work are just a few. Carrying the stress of not being able to make monthly payments or getting caught in the cycle of never ending debt can be exhausting. Filing for bankruptcy usually comes with a sense of relief.
Although it is a difficult decision to come to, people are often comforted in knowing that there is a light at the end of the tunnel. Call a chapter 13 lawyer Peoria IL provides from Smith & Weer, P.C. at 309-694-6700 so that we can help you resolve debt through bankruptcy.