Millions of people are confused when it comes to comparing and contrasting Chapter 7 and Chapter 13 bankruptcies. When it comes to filing Chapter 7 Chicago bankruptcy, there is a lot involved that most people probably never even thought of in the past. If you know very little about bankruptcy and how it works, you can easily become ensnared by the lies and myths that have been in circulation for many years. What exactly does bankruptcy mean? How does one file for bankruptcy? What is the difference between filing Chapter 7 and Chapter 13?
What Does Bankruptcy Mean?
Do not focus on what you hear from other people about what bankruptcy means to them. Look it up for yourself to learn the truth and you may be surprised. By definition, this process allows people to legally make the declaration that they are unable to pay their currently outstanding debt. Instead of a sign of failure, then, filing Chapter 7 Chicago bankruptcy should be considered as being more of a scream for help and plead for a fresh, clean slate.
Filing for Bankruptcy
After retaining one of our lawyers to officially file for your Chapter 7 Chicago bankruptcy, we will work behind the scenes on processing the necessary documentation while you attend a couple credit & financial management courses that are mandatory parts of the process. Based on your case, you may be entitled to immediate protection against losing your assets right away. A trustee meeting is coordinated and scheduled during that time to further discuss any agreed upon payment arrangements and the liquidation of your specific assets which will lead up to your bankruptcy becoming discharged.
Chapter 7 = Liquidation
To simplify the concept of filing Chapter 7 Chicago bankruptcy, it would be wise for you to just think of it as asset liquidation. State law allows you to keep specific assets, but anything else outside of those limitations may be taken away and liquidated based on this type of filing. The main difference between filing Chapter 7 and Chapter 13 is that Chapter 7 moves much quicker from beginning to end due to the reduced amount of time that is spent in litigation.
Whether you decide to file Chapter 7 Chicago bankruptcy or not, it is wise for you to keep in mind that you are putting a lot more at stake and risk of losing a lot more in the process.
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