Top Benefits of Bankruptcy in 2023

In the New Year, you may be considering the possibility of filing for personal bankruptcy. As you may already know, the two most common types of personal bankruptcy are Chapter 7 bankruptcy cases and Chapter 13 bankruptcy cases. Both types of bankruptcy require the debtor to show eligibility, and the proof required to show a person’s eligibility for Chapter 7 will be much different from that required for a Chapter 13 case. In short, Chapter 7 requires the debtor to show that their income and assets are limited enough for liquidation bankruptcy to make sense. Differently, Chapter 13 bankruptcy requires the debtor to show that they have a regular income that is stable enough and of a high enough value for the debtor to reliably be able to make payments for three to five years in a reorganization bankruptcy. Both types of bankruptcy come with pros and cons.

When it comes to the “pros,” what are the top benefits of bankruptcy in 2023? Our Oak Park bankruptcy attorneys have more information to help you. The following are the benefits of personal bankruptcy that you should consider.

You May Be Able to Stop a Foreclosure

When you file for Chapter 13 bankruptcy, you can stop foreclosure. Under U.S. bankruptcy law, this type of bankruptcy will let you halt the foreclosure process and catch up on mortgage payments with your lender so that you can remain in your home.

You Can Obtain Debt Relief While Keeping More of Your Assets Than You Might Think

Most likely, you can obtain debt relief while keeping more of your assets than you might think when you file for bankruptcy. If you are filing for Chapter 13 bankruptcy, you will not lose any of your assets. If you are filing for Chapter 7 bankruptcy, you should know that this is a type of liquidation bankruptcy, but Illinois bankruptcy exemptions will allow you to keep a wide range of your assets, both tangible and intangible. Those assets include equity in your home and in a motor vehicle, retirement accounts, a large portion of your wages, many kinds of personal property like clothes and books, any “tools of the trade” that you require for your profession, and a “wildcard” exemption so that you can keep any asset or assets of your choosing up to $4,000 in value.

Debt Collectors Must Stop Trying to Collect

The automatic stay is one of the great benefits of filing for personal bankruptcy. If you are being routinely contacted by creditors, you should know that the automatic stay applies to your case the moment you file for bankruptcy. The automatic stay is an injunction that stops debt collectors and creditors from taking any further action against you — including contacting you — in an attempt to collect on the debt you owe. Indeed, the automatic stay stops phone calls, emails, lawsuits, garnishments, and more.

Contact an Oak Park Bankruptcy Attorney

Do you have questions about the implications of filing for consumer bankruptcy or the potential benefits of Chapter 7 or Chapter 13 bankruptcy case? Our experienced Oak Park bankruptcy attorneys can help you. Do not hesitate to get in touch with us to find out more about the services we provide to consumers in Illinois. Contact the Emerson Law Firm for more information.



See Related Blog Posts:

Holiday Spending and New Year Bankruptcy: What to Consider

Supreme Court Will Consider Bankruptcy Debtor’s Liability for Someone Else’s Fraud

Comments

Post a Comment

Popular posts from this blog

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti
Read more

Learning About Different Types of Wills

Whether you are young or old, single or married, wealthy or with limited financial means, healthy or dealing with a medical condition, it is important to make a will. Many people have incorrectly heard that wills are only necessary for particular people, such as those with a substantial amount of assets or for older adults in poor health. Yet wills are critical for adults of all ages, and an experienced Oak Park estate planning lawyer can help you to make one. Before you begin working with a lawyer on a will, you might start conducting your own research into wills in Illinois and the requirements for a valid will. In so doing, you are likely to come across information about many different types of wills, and you are probably going to wonder whether you will need more than one kind of will. In short, there are different terms that can be used to describe the form or function of a will, as well as some distinct types of wills. Our Oak Park estate planning attorneys can explain in more
Read more

Younger Parents Need an Estate Plan

It is critical for younger parents to have an estate plan, even if they know they are healthy and do not anticipate that anything will happen in the near future. Much too often, younger parents assume that they can wait until they are older to consider estate planning or until there is a health-related reason to begin the estate planning process. Yet estate planning is critically important for parents who have minor children. While estate planning is important for adults of all ages, it can allow parents to make important decisions about who will care for their children in the event that they become unable to do so themselves. Our Oak Park estate planning lawyers can explain in more detail. Naming a Guardian for Your Minor Children in Your Will Most importantly for younger parents, making a will allows you to name a guardian who can care for your child in the event of your unexpected death. Nobody anticipates a deadly accident or a sudden situation in which there is a need for another
Read more