What Filing for Bankruptcy in Chicago Could Do for You

One of the most important questions people considering  bankruptcy in Chicago have on their minds is:  “What exactly can I accomplish by going through with this?”  The answer will be different depending on an individual’s particular situation.  But in general, filing for bankruptcy in Chicago can accomplish a lot of things that could help relieve the burdens of overwhelming debt.

The most important thing is that bankruptcy is the legal route to getting out from under that mountain of debt.  When someone files for bankruptcy in Chicago (or anywhere else for that matter), if his or her case is successful, a “discharge” will be granted.  The discharge does away with any legal obligation to pay back most debt- or even all of it in many cases.  The discharge is essentially a court order prohibiting creditors from collecting the discharged debt.  This is the most important goal for most people.

The second most important goal for a lot of people is to stop collections.  When a person files a bankruptcy petition, the law demands that creditors stop trying to collect right away.  This is called the “Automatic Stay.”  The automatic stay can stop a home foreclosure, at least temporarily.  The automatic stay can also stop:

• the garnishment of your wages (can you really live on half of your wages?)
• the repossession of your car (how will you get to work?)
• utility service “shut-off” (yes, they really mean it when they send a Final Notice.)
• harassing calls from debt collectors (enough already.)

These are generally the two most important advantages to filing for bankruptcy in Chicago.  There are more advantages and I will share them in future posts.  There are disadvantages too.  And bankruptcy isn’t the best solution for everybody.  But for most people who are really having a rough time with debt, the advantages usually outweigh the disadvantages.

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