Chicago Bankruptcy Questions Are On the Minds of Many: Here Are Some Answers
Illinois, and Chicago in particular, have been badly hit by the nation's continued economic problems. Beyond inflation, falling wages, and a freefall within the real estate market, the lack of economic expansion has led to a scenario where very few businesses are adding new workers or increasing the hours of those they already employ. Because of these sad, but unfortunately true facts, many families that once would never consider declaring bankruptcy an option have been forced to learn more about it. Indeed, across Chicago bankruptcy questions have begun to crop up more and more in daily conversation.
Because there are so many questions regarding insolvency, a quick review of basic bankruptcy laws might be of help to some of the many families that are thinking of seeking out the protection it grants. As always, questions regarding specific cases and the application of the law should always be reviewed with an experienced attorney, however the following should be able to answer the most common bankruptcy-related questions:
Do I lose all of my assets when I declare bankruptcy?
No, as the point of bankruptcy is to protect certain essential assets from being seized by creditors. Under Chapter 7, these can include trade tools, homes, and older vehicles, among other items. Referred to as 'exempt' assets, they are protected from liquidation. All non-exempt assets, however, will be sold by a trustee and used to reimburse creditors. Under Chapter 13 an individual never loses any assets due to the bankruptcy declaration.
Is it true that it's harder to declare bankruptcy because of the new laws?
In some ways. Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 an individual can only declare bankruptcy once within an eight year period. They must also take a so-called 'means test' before a Chapter 7 filing can proceed. If the test determines that they have disposable income, they can re-file under Chapter 13.
If I declare bankruptcy does it absolve me of child support?
No, child support and some other forms of debt are generally not discharged under either Chapter 7 or Chapter 13 bankruptcy.
Are there ways to avoid bankruptcy?
Yes, as creditors are occasionally willing to modify the terms of loans and other debts. Debts can also be consolidated and restructured by a debt management firm for a fee.
Can bankruptcy impact my job or future careers?
Yes, as there are certain military and other security jobs that look into someone's bankruptcy status.
There are, of course, many other common questions individuals have about bankruptcy. To discuss some of them with an experienced attorney, anyone who may be thinking about declaring insolvency should feel free to call our offices today.