If you’re a Silvis, IL, resident and are going through a financial hardship, filing for bankruptcy may be the right move for you. Before you make any decisions, consult with an expert bankruptcy lawyer. They examine all aspects of your financial situation and determine if bankruptcy is your best option and, if so, which chapter to file.

Which Bankruptcy Filing Is Right for You?

1. Chapter 7 Bankruptcy

Bankruptcy lawyers recommend filing Chapter 7 bankruptcy for people who want to get out from under the burden of debt. There are very few returns to creditors in a Chapter 7 filing. A trustee will be appointed to itemize all of your non-exempt assets to sell them off and use the proceeds to pay existing creditors. The process is relatively quick, with most cases going from filing to discharge in as little as 90 days. If you file Chapter 7 bankruptcy, your credit report will show the filing for 10 years. However, you will have access to additional credit options during that time.

It’s important to note that in a Chapter 7 bankruptcy, you may lose property that you would otherwise prefer to keep. For example, in Illinois, if your home has sufficient equity to pay off creditors, it’s likely that you will be forced to move to a new residence.

2. Chapter 13 Bankruptcy

A bankruptcy lawyer will explain that Chapter 13 bankruptcy does not eliminate your debts. Instead, it’s a mechanism to enter into a repayment plan which usually lasts for five years. During a Chapter 13 bankruptcy, a trustee oversees the process, and a set monthly payment is established. 

After filing Chapter 13 bankruptcy, your credit will take a hit. The filing will show on your credit report for seven years, and you will be unable to receive other credit options during the life of the repayment plan.

3. Chapter 11 Bankruptcy

Unlike Chapters 7 and 13, Chapter 11 Bankruptcy is not available to individuals, only corporations and partnerships as a means of reorganizing a business and allowing it to continue to operate. If you’re attempting to get out of personal debt, you will be unable to file under Chapter 11.

Whether it’s due to the loss of a job, insurmountable interest rates, or a divorce, if you’re no longer able to pay your debt obligations, it’s time to consider filing for bankruptcy. Consulting with a knowledgeable bankruptcy lawyer will eliminate your stress as they establish a path to get you out of debt. Pepping Balk Kincaid & Olson, Ltd has over 75 years of combined legal experience and provides personalized legal services that are second to none. If you’re in the Silvis, IL area, and would like to regain your financial freedom, call 309-755-5096 or visit their website.