When considering bankruptcy as an individual (as opposed to a corporation) you have three primary options: Debt Negotiation, Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Our Lisle Bankruptcy attorneys will assess your personal financial situation, educate you on your options, and help you determine which option is the best for you.
Hiring our Lisle bankruptcy attorneys to renegotiate your debt may be your best option if you have less than $15,000.00 in debt, or assets that you are afraid in losing in the bankruptcy (see our article about keeping property in bankruptcy). A good attorney can often convince your creditors to significantly reduce the amount of your debt and/or allow you to execute a payment plan whereby you pay back your debt over time. Typically, the longer the duration of the payment plan, the smaller the amount by which creditors will be willing to reduce your debt.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a great option if you have more than $15,000.00 in debt, you do not have assets in excess of the amounts that are exempt from collection in bankruptcy, and you are not making an excessively high income. In a Chapter 7 Bankruptcy, your dischargable debt (basically everything but student loans and tax debt) will be wiped out, and you can usually keep your house and cars.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is appropriate for individuals who are not qualified for a Chapter 7 Bankruptcy due to their income level or who have assets in excess of the exemption amounts that they would be in jeopardy of losing in a Chapter 7 bankruptcy. Unlike a Chapter 7 bankruptcy, your debts are not wiped out in a Chapter 13 bankruptcy. Rather a plan is approved by your creditors and the court to pay off the majority of the debt over the course of 3 to 5 years. Chapter 13 bankruptcy is a tool to buy you time to pay your creditors.