How Bankruptcy Helps People Start Fresh

by | May 8, 2012 | Bankruptcy Law

When people think of the word Bankruptcy, it is often met with a quick internet search for a good Chicago bankruptcy lawyer to help them with their case. But, the truth of the matter is that when people talk about bankruptcy, it’s often met with resistance, hesitance and uncertainty. No matter how hard you try, the fact remains that sometimes, our business ventures, our personal lives and our finances simple get turned up-side-down. We live in a nation that provides laws and protection for individuals and business owners security from possible legal action and gives people a well needed second chance. This is when retaining the services of a great Chicago bankruptcy lawyer will give you strength for that second chance we all deserve.

According the statistics, 27% of all United States citizens have filed for bankruptcy at one time in their lives. In 2009, when the economic downturn really took off, that percentage rose by nearly 15 points. The point being, you are not alone in the Bankruptcy process and hiring a good Chicago bankruptcy lawyer can easily help you get back on financial track.

The reason that Federal bankruptcy laws exist in the first place is to allow the good people in our country, who pay their taxes, work hard and earn a decent living the opportunity to gain a fresh start after financial crisis occur. The process is very structured and is overseen by the United States Federal Court. In today’s bankruptcy world, there are basically two types of bankruptcy filings that people or businesses can file.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy accounts for nearly half of all filings in the US each year. This type of legal filing allows people to obtain a clean slate in regards to the debt they’ve accumulated. The downfall of this type of bankruptcy filing is that it leaves a very hard mark on your credit rating for several years and if you own assets, you are likely to lose them to the Federal Government to be auctioned off to pay for a portion of your debts.

Chapter 13 Bankruptcy

Chapter 13 is a bit more complex as it permits people to pay their debt under a Federal Government monitored 3-5 year payment program. This program is a very good solution for people with owned assets as you are not required to surrender these assets during Chapter 13 filings. Since the bankruptcy laws changed in 2010, many people are beginning to take advantage of this type of filing and hire Chicago bankruptcy lawyers to handle the entire filing process on their behalf.

The biggest thing to remember is that filing for bankruptcy does not make you a criminal or weak. By filing for bankruptcy, you are simply given the opportunity to start fresh, learn from previous mistakes and move forward with your life. A professional Chicago bankruptcy lawyer will help you through this process smoothly and affordable.

If you are looking to retain the assistance of a Chicago bankruptcy lawyer, the team at our website can help you with the bankruptcy process from start to finish.

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