Many Illinois and Indiana residents take pride in their ability to effectively manage their finances. This is why when they face financial difficulties they often choose to try to fight their way out of their hole rather than seek financial relief. Although, personal bankruptcy may be able to provide these individuals with a way out by giving them the fresh financial start they need.
It is estimated that 733,000 individuals and businesses will seek bankruptcy protection this year. That’s an increase of about 50,000 individuals and businesses who sought bankruptcy last year. This comes at a time when household debt is climbing, spurred by student loan debt, auto loans, mortgages and credit card debt. Unfortunately, though, many of these people wait too long to seek the protections offered by bankruptcy. If they had only sought it out sooner they could have avoided additional financial losses and overwhelming stress.
By pursuing Chapter 7 or Chapter 13 bankruptcy, individuals may be able to not only eliminate or significantly reduce their debt burdens, but they may also be able to protect some of their most prized assets. For example, under many bankruptcy filings, individuals are able to retain certain retirement accounts. They may even be able to keep a significant portion of their personal property. It can also halt foreclosure and stop creditor collection efforts and harassment.
Qualifying for each type of bankruptcy plan requires an individual to meet strict federal requirements. Also, bankruptcy is not right for everyone. For some, merely consolidating debt may be enough to keep on track to pay off their debts. For others, the hit that bankruptcy can cause to their credit is just too much for them to accept.
Despite the possible setbacks and challenges, bankruptcy is often the right step for many individuals facing overwhelming debt. By having a conversation with a skilled legal professional, these individuals may be able to develop a path forward that leads them towards debt relief and a fresh financial start.