Bensenville Bankruptcy Attorneys

DuPage County Debt Relief Lawyers Helping With the Bankruptcy Process

Debt is common for consumers in the United States. Most people owe some form of debt, and they may need to make ongoing monthly payments to multiple creditors. These debts may include home mortgages, auto loans, credit cards, or student loans, and after making all of these payments, a person may struggle to address their other regular expenses. In some cases, debts can become unmanageable, and issues such as the loss of employment or a serious illness may affect a person's ability to repay what they owe. Fortunately, relief from debts may be available to consumers through bankruptcy.

At the firm of Hunt & Subach, Ltd., we work to help our clients understand their options when they are struggling with overwhelming debt. We advise people on whether bankruptcy will be an effective method for eliminating debt and regaining financial security or whether they may pursue other options, such as negotiating loan modifications with lenders. In addition to helping people file for bankruptcy and ensure that they meet all of their legal requirements for debt relief, we can help determine the best options for defending against foreclosure or preventing the repossession of property by creditors. With our experience in real estate law, we can also help homeowners determine whether completing a short sale will be beneficial if they will be unable to avoid the loss of their home.

Types of Consumer Bankruptcy

People who have experienced financial difficulties and failed to make payments toward their debts may need to deal with harassment from creditors, and they may be concerned that a vehicle or other property will be repossessed or that their wages will be garnished. Fortunately, debtors can put a stop to debt collection actions by filing for bankruptcy. Once a bankruptcy petition has been filed, an automatic stay will prevent creditors from attempting to collect debts, including contacting a person, initiating or continuing foreclosure proceedings, repossessing property, or seeking a judgment in court.

Depending on the types of debts a person has, the disposable income that is available to them, and whether they want to keep certain types of property, a debtor may be able to pursue either a Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is usually the simplest and easiest form of bankruptcy, and it will allow for the elimination of most debts within a few months. A means test will be used to determine whether a person qualifies for Chapter 7, and this test will examine their income and regular expenses to determine whether they may be able to repay debts using their disposable income. During a Chapter 7 bankruptcy, a person may be required to turn over certain assets, which will be liquidated to repay as much of their debts as possible. However, certain types of property may be exempted from liquidation, and in many cases, debtors are able to maintain ownership of most of their assets. Once the bankruptcy process is completed, the debtor's debts will be discharged.

Debtors who do not pass the means test or who want to maintain ownership of assets used as collateral for secured debts may file for Chapter 13 bankruptcy. In this type of bankruptcy, a person will repay some of what they owe through a repayment plan that will last from three to five years. The amount of monthly payments in this plan will be determined based on a person's disposable income. Once the repayment plan has been completed, the person's remaining unsecured debts will be eliminated.

Bankruptcy can be used to eliminate most types of debts. However, there are certain debts that cannot be discharged through bankruptcy. These include child support and spousal support payments and most student loans and tax debts.

Contact Our Bensenville Bankruptcy Lawyers

If you have debts that you are unable to repay, or if you want to know how you can prevent the foreclosure of your home, the repossession of other property, or the garnishment of your wages, our attorneys can advise you of your options for filing for bankruptcy or receiving other forms of debt relief. Contact us today at 630-860-7800 to set up your free consultation. We provide representation in bankruptcy and foreclosure proceedings in St. Charles, Geneva, Downers Grove, Kane County, DuPage County, Bensenville, Wheaton, and Naperville.