North Riverside Bankruptcy Information: Basic Facts and Things Any Family Should Consider
It's not uncommon in these times to see houses that have been on the market for months, if not years, boarded up businesses, or families that have suddenly had to reduce the quality of their lifestyles. Naturally, these and other basic, easily observed signs make many people wonder about the exact nature of the economy and what its impact might have on them in the near future. They may even question whether or not bankruptcy might have to be an option in their own lives, as the combination of depressed wages and other earnings, combined with a lack of private sector growth, has many worried about whether or not they will be able to pay for what they can afford today, tomorrow. Such worries are felt with a particular sharpness throughout the western suburbs, as many well-known and seemingly impervious businesses in the area have had to close shop recently. For North Riverside bankruptcy information, however, individuals and their families have a great many options and sources, including those provided by firms that are experienced in bankruptcy law.
It should first be noted to any such individual or family that, yes, bankruptcies have been on the rise in recent years, even in the greater Chicago area. Though this is perhaps due to stagnation in the region's job market, many other factors have come into play. What should be emphasized, however, is that in contrast to some common misconceptions, individuals can still declare bankruptcy if they have income. The incorrect rumor that someone who receives wages or is otherwise employed cannot make such a declaration most likely originates with a misunderstanding of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Under its amendments to existing federal statute, an individual cannot proceed with a Chapter 7 filing if they fail the so-called 'means test'. Essentially an analysis of someone's income, this test seeks to determine if an individual has disposable income that can be used to repay creditors. It does not, however, automatically prevent anyone who has disposable income from filing for a form of bankruptcy, as petitioners whose Chapter 7 cases have not been allowed to proceed may re-file under Chapter 13.
Another piece of valuable North Riverside bankruptcy information involves the exact nature of credit and consumer problems in the general area. Though credit counseling agencies are tasked with helping individual families understand the exact nature of their debt-related issues, the counselors at such agencies can give a client a general sense of their debt situation in relation to the community as a whole. Indeed, in the wake of subprime mortgage-related problems, credit counseling has become an important part of helping people to develop their personal finances throughout the city and suburbs. Because it can have a positive impact, BAPCPA has also made counseling mandatory for anyone who seeks to proceed with a bankruptcy claim.
Finally, any family, individual, or business in the western suburbs that is considering a bankruptcy declaration should consider reviewing the basic nature of Chapter 7, Chapter 13, and in some cases, Chapter 11 filings. Among their many differences, Chapter 7 involves the liquidation of non-exempt assets in return for the forgiveness of some debt while Chapter 13 allows for the retention of assets alongside the creation of a debt repayment plan that must be completed in full.
For a discussion on these and other points, anyone in the North Riverside area who may be facing bankruptcy should feel free to contact one of our office's experienced attorneys.