Home » Lawyers » Chapter 7 Bankruptcy In Marion, IL, Helps You Move Past Your Debt Problems
Chapter 7 Bankruptcy In Marion, IL, Helps You Move Past Your Debt Problems
by alex | on Oct, 2013 | category Lawyers | No Comments
Being deep in debt eventually becomes exhausting as it drains you of your money and your peace of mind. You feel like you can't fight against it as you know you owe the debt. In the meantime, creditors and debt collectors are hammering your phone non-stop in an effort to get blood from a stone. There are threats of taking you to court being bandied about, which puts you at risk of losing money through a wage garnishment. In fact, your paycheck gets eaten away when you wind up with a bunch of garnishments all at once. Instead of dealing with these issues, look into Chapter 7 Bankruptcy in Marion, IL and leave it all behind.
Bankruptcy stops all of your problems almost immediately. When you file for a Chapter 7 Bankruptcy in Marion, IL, you invoke what is known as the automatic stay. This stay means that your creditors are barred from unreasonable contact while your bankruptcy is active. Provided you make it to discharge without problems being raised, that stay becomes a permanent one, and you'll never have to field another phone call from a creditor again.
Chapter 7 is mostly used for personal bankruptcies, although a business can file under this chapter along with the option of Chapter 11 Bankruptcy in Carbondale, IL. If you are self-employed and are a sole proprietor, you can file under Chapter 7 without having to go through the business aspect. In the event that you have inventory and outstanding business debt while a sole proprietor, talk to a lawyer about how it is going to be handled during the bankruptcy.
You don't necessarily have to worry about losing your worldly goods during a Chapter 7. If you own items that have outstanding balances on them, such as a car loan, the court isn't interested in them. The same goes for retirement accounts of all types — the laws specifically make them off-limits to the trustee. There is also the ability to exempt many of your items up to a certain dollar amount, which allows you to keep possessions that are important to you. But, talk to a lawyer before making any decision to understand how bankruptcy is going to affect you.