Posted By on Jan 15, 2016 |

debt1There’s nothing left no matter what you try. That could be very banal description of a bankruptcy. As a consequence of your own bad business decisions, negligence, circumstances or market crises, there is a real frightening possibility to face a point where you can no longer afford to pay all your debts. This is a moment when you declare a bankruptcy. Your solution is to hire a lawyer, for example Chicago bankruptcy lawyers.

Bankruptcy is a legal procedure which implies liquidation of one’s business or property when individual’s current assets are not sufficient to pay all existing debts. The process enables a person to get most bills discharged or get extra time to pay the bills. A good lawyer can even succeed in keeping individual’s property, such as car or home. 

bankruptcyRoughly speaking, bankruptcy law procedure includes an individual (called debtor) doing all the paper work and filing bankruptcy in order to obtain discharge. Process guarantees that creditors cannot sue the debtor or try to neither collect their share nor have any claim on the debtor’s future income.

How-Much-Does-It-Cost-to-File-Bankruptcy-730x484There are several alternatives to bankruptcy, such as out of court settling with creditors, legal ways of reduction of debts or paying debts by selling or borrowing on debtor’s property. Therefore, before declaring bankruptcy the debtor should be sure he had exhausted all the other financial resources. All material property has to be sold off. Otherwise, the court will force it. In order to fill bankruptcy, the debtor has to convince the court that there’s no property left to be sold or any additional income that could be used for settling with creditors. Once the debtor has completed the procedure, the debts are wiped out and he is given a chance for a fresh start. There are several exceptions when law does not allow for that particular debt to be forgiven, but one should anyway leave a good lawyer to handle tricky legal procedures.

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