There are many factors to consider when making the decision to file for bankruptcy. Under certain circumstances, it may be a good idea for you to delay filing. For example, if you anticipate significant expenses in the near future that will result in new debts, then filing too early will leave you responsible for those debts. One example might be undergoing surgery; filing for bankruptcy after your surgery will eliminate your medical debt.
If you’re considering filing for bankruptcy because you’re facing foreclosure, ask your bankruptcy attorney if it’s a good idea to delay filing. Often, homeowners can obtain a mortgage modification for more favorable terms. However, it’s much more difficult to successfully modify your mortgage after filing for bankruptcy. There are many other reasons why you might wait to file your bankruptcy petition; talk to a lawyer about your unique circumstances.
Cutler & Associates, Ltd. is a bankruptcy law firm with seven convenient locations, including Aurora and Schaumburg. If you have any questions about filing for bankruptcy, give us a call at (847) 505-0380.
Although declaring bankruptcy is sometimes the best option for individuals in difficult financial situations, it does adversely affect credit history. Fortunately, you can start rebuilding your credit immediately after your bankruptcy. Always pay your bills on time and in full. Your credit score is partially comprised of your payment history. You can also apply for a secured credit card, which involves paying a security deposit to the issuer. Make sure you only charge amounts that you can pay off each month.
For more information on bankruptcy and its effect on your credit history, watch this video. This financial advisor discusses some common reasons for filing for bankruptcy and explores secured credit cards.
The law offices of Cutler & Associates, Ltd. can help you resolve your financial problems and stop wage garnishments. Schedule a consultation with one of our bankruptcy attorneys in Aurora by calling (847) 505-0380.
Many people who file for bankruptcy do so because of significant life events, such as exorbitant medical bills due to the illness of a child or the costly burden of a divorce. For many, filing for bankruptcy is an enormous relief; it offers the opportunity to build a new financial future. However, after filing for bankruptcy, you will need to make some changes to your lifestyle and possibly your housing situation. You’ll also need to be firmly committed to improving your credit rating and managing finances wisely.
Evaluating Your Housing Choices
One of the most common questions people have about bankruptcy is whether they will lose their home. In most cases, filers will retain ownership of their home. Some people do choose to give up their home when they feel the financial burden is too much for them. If this describes you, you can expect to rent for a while after your bankruptcy before you can qualify for a mortgage. Landlords and property management groups often evaluate a prospective tenant’s credit history, which will reflect the bankruptcy. Often, filers find that renting an individual property, duplex, or apartment within a small building is more feasible than renting from a landlord that owns a very large complex. Landlords with smaller properties may be more apt to recognize that you’re trying to rebuild your finances.
Modifying Your Lifestyle
Even if you filed for bankruptcy due to circumstances beyond your control, you’ll need to practice sound financial management after filing. Since qualifying for a personal loan when emergencies arise is going to be difficult, it’s vital to build an emergency fund. Plus, if you filed for Chapter 13 bankruptcy, you’ll be making structured payments on your debts. You’ll need to cut unnecessary expenses from your budget and live a modest lifestyle.
Improving Your Credit Rating
Improving your credit rating should be one of your highest priorities after bankruptcy. In addition to making all of your payments on time, you may be able to build your credit with a secured credit card.
The bankruptcy attorneys of Cutler & Associates, Ltd. offer our clients decades of experience in filing for bankruptcy in Illinois. We can help you build a solid financial future with a Chapter 7 or Chapter 13 bankruptcy. Explore your options today by contacting our Aurora or Schaumburg offices at (847) 505-0380.
Debt collectors have a reputation for being unpleasant and some of them are downright abusive. Consumers do have legal rights when it comes to debt collection. These legal rights were established with the Fair Debt Collection Practices Act (FDCPA). If you’re unsure of your legal rights or you feel you’re being harassed, it’s a good idea to contact a law firm. If you have exorbitant debt that you feel you can’t pay off, you may wish to contact an attorney at a law firm that specializes in bankruptcy law.
Lawyers often work with clients who have suffered from misleading or fraudulent actions on the part of unscrupulous debt collectors. The FDCPA prohibits debt collectors from engaging in fraudulent, deceptive, or otherwise misleading practices, which include falsely pretending that the caller is an attorney, threatening your arrest, threatening illegal actions, or threatening actions that the caller does not truly intend to carry out. They also cannot misrepresent the nature or the amount of the debt.
Excessive Phone Calls
One of the more common complaints consumers have about debt collectors is the sheer number of phone calls from these agencies. Debt collectors are not legally permitted to make an excessive number of daily phone calls to you, nor can they call you at a time that is inconvenient. They are barred from calling prior to eight in the morning and after nine at night in your time zone. Additionally, if you file for bankruptcy, the debt collector must stop calling you.
Debt collectors are not permitted to use abusive, profane, or otherwise offensive language when communicating with you. They cannot threaten you with harm or violence.
Sometimes, a debt collector will threaten humiliation if the debt is not resolved. For example, he or she may threaten to make information about your debt public or the debt collector may inform your employer and other parties about the debt. These practices are illegal.
The law firm of Cutler & Associates, Ltd. understands the frustration that comes with being buried in debt. With help from our experienced bankruptcy attorneys, you can break free of your debt and get a fresh start in life. To learn whether bankruptcy might be right for you, contact our law firm in Aurora at (847) 505-0380.