Bankruptcy- Is it the last resort?

With tough economic conditions, the rising numbers of unemployed is pretty much obvious. Unstable financial situations have left many look out for new jobs, much to their displeasure as they are asked to either leave or work at minimal pay. For such times, filing for a bankruptcy case in a Geneva, IL court might be the only viable choice. But, bankruptcy is no fit- for- all answer. It might work out to be the best available option for some, unlike for the rest.

By filing bankruptcy under this chapter, a debtor is allowed by court to be discharged of paying certain personal debts. In other words, the person need have any liability for paying such debts. The debts which are included under this head are credit cards and health bills. The debts that are excluded from the debt net include government sanctioned loans for studies, divorce cases like alimony and child support. Every individual case is unique and requires different treatment and so it is better to rope in the services of an experienced attorney handling such cases. The attorney with years of expertise to back on, would best decide the appropriate action, suiting your needs.  

There are many instances where filing Chapter 7 may not seem to be the best bet, but for the ones involving unsecured loans, it is the best one to opt for. Such loans consists of credit cards or medical costs and when s person lacks the ability to repay even the basic payments, nothing better than filing for bankruptcy case in Geneva, IL, under chapter 7. It is most commonly observed that families or individuals opt for it, only when the earning member either dies or suffers from serious personal injury debarring the person from working any further.   

There is a common perception about legal complications involved in chapter 7 bankruptcy filing. To put the working of Chapter 7 in simpler words, the creditor is ordered to stop all the recovery related activities, meaning the creditor needs to stop making calls, sending repeated mails or making personal contact with the debtor in case.

In some cases, if the debt is manageable, chapter 13 would be a better option. Before filing bankruptcy in a Geneva, IL court under this chapter, the debtor needs to chalk out a plan for repaying the debt within some stipulated time frame. One's home being taken away is another common perception. The reality states otherwise as in most cases, home possession is excluded.