As your income increased over the years, so did your spending. Now you’re at a point where the debt is leaving you with very little money at the end of the month, even though you have a decent income. The debt maintenance has reached a crisis point and you can’t settle it easily due to the fact you have little to no savings. The retirement account is off-limits, and you can’t borrow from anyone. Instead of letting the debt overwhelm you and dealing with creditors taking you to court, consider a Chapter 13 Bankruptcy in Marion, IL.
A Chapter 13 Bankruptcy in Marion, IL is typically filed by those with incomes that are well over the state’s median income, and have assets that they want to keep. This chapter of bankruptcy essentially reorganizes the debt into one monthly payment, and makes the debt that much more manageable. It lasts anywhere from 36 to 60 months, depending on the amount that is being put into bankruptcy, and works towards curing outstanding balances. Chapter 13 is also an excellent maneuver to prevent a home from going into foreclosure, but you have to be quick about filing.
Because you are paying back your debt, your assets are yours to keep. Nothing you own is going to be lost to the court, unlike a Chapter 7, where you have to liquidate assets in order to repay your debt. This means any items of value you own are not going to be lost to a court-ordered sale. In the event that your home is at risk of foreclosure, you have to file as quickly as possible. Filing for bankruptcy too late in the game gives the bank the opportunity to ask for relief from the bankruptcy. What this means is if the relief is granted, the bank can move forward with foreclosure proceedings and ask the court to give them the home and evict you. Don’t wait to file if you want to keep your home.
You need to understand how bankruptcy works, how it’s going to affect you, and what to expect while it’s active. To that end, talk to a Bankruptcy Attorney in Carbondale, IL in order to learn more.
