If you are considering filing bankruptcy, you should first consider whether or not bankruptcy will turn out to be an advantage in your situation. Decide first whether other options, such as negotiating with your creditors, would be more advantageous for you. If you think bankruptcy might be your best option, you should contact a bankruptcy lawyer in Schaumburg who can give you solid advice on what is involved in the process.
Things to Consider Prior to Filing Bankruptcy
First, you need to decide which type of bankruptcy best fits your needs and your situation. There are two types that most people file: Chapter 7 or Chapter 13. With Chapter 7, most of your debts will be canceled. With Chapter 13, there is usually some type of repayment plan.
You will also want to get some type of credit counseling. This will help you determine what your other options might be, or if it is determined bankruptcy is your best option, it will give you advice on what forms and documents you’ll need for your claim.
Submitting your paperwork to the court is a complex process that may require you are in contact with your creditors, banks, as well as a lawyer.
Things to Do Prior to Filing Bankruptcy
You will be required to complete something called a means test, which is a calculation that determines whether or not you have the ability to pay your debts. It will compare your financial status to others in your area. If you pass the test, you will be allowed to file Chapter 7 bankruptcy; if you don’t, Chapter 13 will likely be your option.
Bankruptcy law requires that you get credit counseling before you can go through the process. You will also want to gather all financial information regarding your situation with your creditors, whether they are secured or unsecured.
Filing for Bankruptcy in Cook County
You will file with the court, and you will want to consult a bankruptcy lawyer in Schaumburg if you haven’t already done so. You will need the following paperwork:
- Personal information
Assets will include everything you own and their approximate value. You will also need to file a statement of affairs that explains why you are filing.
If you think bankruptcy might be your best option, give us a call at the Law Offices of Robert M. Kaplan, and we can over bankruptcy tactics and help you determine a good decision for your situation.