• Chapter 7 and Chapter 13 Bankruptcies

    Personal bankruptcy is a difficult process for someone to go through, but many people are scared because they simply do not know what the process is like and how it will affect their lives. Gathering information about bankruptcy and what it would mean for you and your family helps to aleviate some of the uneasiness.

    The two types of personal consumer bankruptcies are Chapter 7 bankruptcy and Chapter 13 bankruptcy. In a Chapter 7, the debtors are able to discharge all or part of their debt. In a Chapter 13, debtors agree to a payment plan to repay part of all of their debt.

    During a Chapter 7 bankruptcy, you will likely be required to liquidate assets and then turn them over to your creditors first. This includes money in your checking and savings accounts. Some of your assets may be exempt in the bankruptcy process for a Chapter 7-laws vary by state. Generally after you liquidate your non-exempt assets, they are divided between your creditors and the rest of your debt is discharged. However, in the majority of Chapter 7 bankruptcies, most of people’s assets are exempt and therefore do not need to be liquidated.

    In a Chapter 13 bankruptcy, individuals organize a payment plan to repay creditors. The individual will submit the plan to the court for approval and began making payments to the trustee, who then pays the creditors.

    Bankruptcy is different for each individual, and there are many variables in each case. Please contact our firm for a free consultation.

    Benjamin Brand Services- Chicago bankruptcy attorneys .

  • Do Not Lose Sight of Financial Obligations during Divorce

    A divorce is a very troubling and trying time for couples, financially and emotionally. Unfortunately, persons going through a divorce can lose sight of long term finances and just try to get the divorce finalized as quickly as possible. Financial hardship is often cited as a reason couples divorce, but that does not mean that once your divorce is finalized you no longer have an obligation to creditors you borrowed from during your marriage-at least your share of it.

    Creditors typically do not care how the bills are paid, simply that they are paid. If you and your spouse signed up for a credit card or financed a home or a vehicle together, you are both still on the hook if the bill is not paid.

    An agreement in a divorce for one or both parties to pay these debts is legally binding and collectable. Any and all debt you agreed to pay while married will still hold true following your divorce, additionally, if your divorce decree says that you must pay certain debts, you may or may not be able to get rid of those debts in bankruptcy. That is why talking to a bankruptcy attorney with experience is so important.

    If you are going through a divorce and are concerned about financial obligations, it is wise to contact a bankruptcy attorney in addition to a divorce attorney.

    Benjamin Brand Services- Chicago bankruptcy attorneys .