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.
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If you file a Chapter 7 bankruptcy petition, exemptions determine what property you get to keep and what property you need to give to the trustee. In a Chapter 13 petition, having bankruptcy exemptions results in lower monthly payment plans. Bankruptcy petitions usually protect certain types of assets, such as motor vehicles and wedding rings.
In a Chapter 7 bankruptcy, the trustee sells the debtor’s assets in order to pay back a portion of the owed debt. However, the bankruptcy trustee is unable to sell property or assets that are considered exempt. This means that bankruptcy exemptions allow debtors to protect certain assets during the Chapter 7 bankruptcy process. While Chapter 7 bankruptcy results in the sale of non-exempt assets, Chapter 13 bankruptcy allows debtors to keep all property and reorganize their debts. However, the amount owed to creditors depends on what property qualifies as a bankruptcy exemption. As a result, bankruptcy exemptions in Chapter 13 help reduce the amount owed to creditors in the payment plan.
Call (847) 505-0380 to schedule a free bankruptcy evaluation with Cutler & Associates, Ltd. Our bankruptcy attorneys have helped thousands in the Chicagoland area, including Aurora and Schaumburg.