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Bankruptcy is an important decision, and you should try to avoid being pressured into it before you have had the proper time to research and educate yourself. Bankruptcy may not be helpful in every situation, so it is important to take your time and be sure that bankruptcy is the right option for you. It would also be wise to speak with other professionals to get their informed opinions on your circumstances.
However, a truly urgent case might include a foreclosure sale happening in the next week or if you’re facing a citation and are about to have your salary garnished. Unless you are facing such immediate financial concerns, you shouldn’t feel pressured. You need to know that bankruptcy is the right choice.
Be cautious of false promises when you are looking at advertisements for bankruptcy. Be sure that no one is selling you a promise that all debts will be cleared without knowing anything about you or your circumstances. There are certain things that you cannot eliminate with bankruptcy, and you may have to pay some debts in full with Chapter 13.
Any time someone makes upfront promises about your bankruptcy without knowledge of your situation, it is an immediate red flag. You also want to be sure that anyone you are listening to about bankruptcy has had a wealth of experience in this area of the law, as it can be very complex and requires a thorough understanding for the best results.
In some cases, a creditor may tell you that you should file bankruptcy, but bankruptcy rarely benefits creditors unless you have assets. Bankruptcy closes a creditor’s book, but bankruptcy alone will not get them paid.
Creditors can also utilize what is called an “involuntary bankruptcy,” where they can force you into Chapter 7 bankruptcy, though this is quite rare.
Attorney Penny Bach is a seasoned lawyer based in Illinois who has helped countless clients just like you navigate the intricacies of bankruptcy law. With more than two decades of legal experience, Penny is prepared to assist you in developing a debt management plan so that you can make the right decision about bankruptcy.
Still have questions? Ready to get started? Contact Bach Law Offices, Inc. today to schedule an initial consultation.
Debt settlement can come in several forms, and if it doesn’t feel right, don’t do it. Debt settlement services effectively lend you a certain amount of money, expecting to be paid back over time with a fixed rate that is generally less than that of credit cards.
While some of these companies operate in good faith, the debt settlement industry is still very much a minefield highly associated with the risk of scams. If a settlement service claims that you will only have to pay 50% of your loans, do not work with them.
If you decide to work with a debt settlement company, it’s important to be sure that everything makes sense and that you understand the terms of your agreement. While some of these companies are quite ethical, it is not uncommon for debt settlement companies to fail to pay your bills on your behalf, damaging your credit and opening you up to potential lawsuits.
When looking to work with an attorney, it is important to discuss your situation with your lawyer before making the decision to file bankruptcy. In other words, you should avoid working with an attorney who pushes you into filing for bankruptcy before discussing your circumstances with you. In some cases, bankruptcy is not the best option for handling your debts, so you should avoid working with an attorney who does not have these thoughtful conversations with you ahead of time.
Your lawyer should also be able to explain each type of bankruptcy and whether a Chapter 7 or Chapter 13 would be more beneficial to your position. Ultimately, you are the party who will be directly affected by filing for bankruptcy, so it is important that you understand the reasons why you’re filing as well as the associated costs, benefits, and risks of filing for each Chapter.
It is also important to work with a lawyer who can identify any potential red flags and prepare you to handle them. This is not to say that anything will necessarily go wrong during the process, but preparing for any potential hiccups will lead to a smoother process overall with no surprises. If your attorney is unable to help you with these things, it may be wise to reconsider your options.
Even if bankruptcy ends up being the right choice for you, you should never feel pressured into it. Bankruptcy is a serious decision that you should not be pushed into, and there are certain statutes that can protect you if you are pressured by a debt collector. The statutes in question are a part of the Fair Debt and Collection Practices Act and could provide you with protection in the event that debt collectors are doing something wrong.
The Fair Credit Reporting Act and other statutes are in place to protect you from collections harassment, incessant phone calls, and poor conduct from debt collectors. If you are struggling with these types of behaviors, a conversation with a consumer protection attorney or a bankruptcy attorney may be your next best move.
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For more information on Bankruptcy Considerations In Illinois, an initial consultation could point you in the right direction. Get the information and legal answers you are seeking by calling (847) 440-5998 today.
Attorney Penny Bach is a seasoned lawyer based in Illinois who has helped countless clients just like you navigate the intricacies of bankruptcy law. With more than two decades of legal experience, Penny is prepared to assist you in developing a debt management plan so that you can make the right decision about bankruptcy.
Still have questions? Ready to get started? Contact Bach Law Offices, Inc. today to schedule an initial consultation.
