Answers to constant questions about Bankruptcy

There are many companies giving up under the financial pressure and are going bankrupt. Many are out of work and others are under heavy debt. The only option in such situations is to consult a bankruptcy lawyer and claim bankruptcy. Bankruptcy in Geneva, IL can be an end to your financial and personal sufferings.

In this article, we will look at some common frequently asked questions and will try to answer them.

What exactly is Chapter 7 bankruptcy?

Chapter 7 involves personal bankruptcy for people (debtors) who are permitted by the court of law to discharge their assets in order to repay their liabilities and debts. Bankruptcy in Geneva, IL involves the process of selling assets to fulfill debentures and liabilities. Common debts included in Chapter 7 are medical bills, credit card bills and unsecured loans. Some examples of some unsecured debts which are not under Chapter 7 of bankruptcy are Child support alimony, taxes and government backed student loans.

What does the process of filing a Chapter 7 involves?

Whenever a bankruptcy is filed under chapter 7, court orders the creditors of the debtor in question and pushes their collection activity further. In short, it means the creditor must stop any type of contact like mailings, phone calls, emails and other forms of personal communication with the debtor.

When is chapter 7 bankruptcy essential? 

Chapter 7 bankruptcy in Geneva, IL is necessary when a person has a huge unsecured loan debt to pay. Usually the person in consideration lacks the ability to pay off his/her debt and then makes use of chapter 7 bankruptcy.

What exactly is Chapter 13 bankruptcy?

Chapter 13 bankruptcy in Geneva, IL does not discharge your liabilities completely. It works over your consolidation of your business and helps you to develop a plan in order to persuade the court of law. Your plan must indicate the period of exact time you need to pay off your debt. Chapter 13 bankruptcy lets you run your organization and gives your company a second life/chance.

When can you file for a Chapter 13 Bankruptcy?

Chapter 13 is a great solution for people who are running behind their payments and need sometime for clearing their debts. The aim of this obligation is to reduce the interest intensity and make it affordable for you. This helps you in paying back your liabilities without much trouble.