When the Creditors Quit Calling

There are pros and cons to declaring personal bankruptcy, so think things through carefully before you make your decision.

There are some plus points you need to know about making the tough decision to declare personal bankruptcy and contact a Chicago bankruptcy lawyer.
For instance, it certainly deals with the stress caused by creditors
that harass you incessantly for payment. When creditors learn you have
declared bankruptcy, they can no longer call you; instead they would be
dealing with a third party who will take care of all debts.

The other very attractive result of declaring personal bankruptcy
with the assistance of a Chicago bankruptcy lawyer is the fact that you
will be paying less once the process is started, as the third party
administrator will set the terms of payment. While the creditors might
not like the terms of payment, they have to follow them.

Often it's best if they reconcile themselves with the point of view
that it's better to have some money, than none at all. Once you have
discharged your bankruptcy, creditors can't chase any of your debts
that have been written off.

The down side to making this decision is that items like student
loans and company loans may be excluded. This is one of the reasons why
you need to talk to a highly qualified Chicago bankruptcy lawyer to
find out the specifics of declaring personal bankruptcy in your
particular situation. If loans are excluded, then you have to pay for
them even when your bankruptcy is discharged.

Unless the bankruptcy is Chapter 13, once you declare bankruptcy,
you may lose control over your house, other assets, and your business
(yes, there are some exclusions, so discuss this with an expert Chicago
bankruptcy lawyer). In many instances, a trustee would take over
everything, sell it and convert it to cash to pay off creditors. Again,
every case is different, and you really need to consult with a skilled
bankruptcy lawyer to find out how your case would be handled.

Another problem that sometimes raises its ugly head is that once
you've been declared bankrupt you may have problems getting a new
current account. In addition, all the fees associated with going this
route – court fees, insolvency fees and other related expenses – are
taken out of your assets.

Sadly, despite the circumstances of your personal bankruptcy, you
may find it very difficult to get credit in the future, unless you deal
with lenders who specialize in prior-bankrupt credit. It's a fact of
discharged or undischarged bankruptcy life that makes gaps in your
credit record, and whether or not they actually are due to a
bankruptcy, they are assumed to be bankruptcy.

There are others disadvantages to declaring personal bankruptcy and
if you choose the right Chicago bankruptcy lawyer, they will outline
all of them so that you are able to make an informed decision. It's a
gut wrenching decision and not one to be taken lightly, that's why you
need a lawyer who won't pull any punches with you and will tell you
like it is.

Patrick Warwick is the lead content contributor for Chicago
Bankruptcy firm, The Law Office of Jay F. Fortier, P.C.. To speak with
a Chicago bankruptcy lawyer or to learn more about creditor rights, Chicago bankruptcy, Chicago bankruptcy lawyer, Chicago bankruptcy attorney, visit Westsidebankruptcy.com.