Bankruptcy And You- Everything You Need to Know about Bankruptcy.

This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.

A Chicago bankruptcy lawyer can explain to you the different bankruptcy options to help you resolve your debt issues – including Chapter 7, Chapter 13 and Chapter 11 bankruptcy. Each bankruptcy alternative has various advantages and disadvantages and it is important to understand how each specific type of bankruptcy will affect your financial future. A bankruptcy lawyer in Chicago can explain the different options to you. A Chicago bankruptcy lawyer can also help complete and file the necessary court documents.

President Bush in April signed into law The Bankruptcy Abuse and Consumer Protection Act. This bill promises many changes to law, and will make it more difficult for the average person in financial trouble to have debts removed with bankruptcy. Recent social and economic changes indicate that those considering a bankruptcy should do so now, as the queue is getting longer.

There are four major types of bankruptcy in the United States. Each type is named for its respective chapter in the United States bankruptcy code. Which one would apply to you depends on several factors including whether or not you are individual or a business. Wikipedia defines bankruptcy as a legally declared inability or impairment of the ability of an individual or organization to pay their creditors. We will discuss the four different types and determine which best applies to you.

Like most formidable situations, bankruptcy has earned its reputation based on very few truthful facts and too many false embellishments. The majority of the miseducation of the public has occurred since the current bankruptcy laws went into effect in 2005. But have no fear, once you know the facts, filing for bankruptcy is not nearly as terrifying as it first appears. Here are some of the most common myths about bankruptcy and what you need to know before you clean your slate.

Some people get into debt because their lifestyle exceeds their income while others find themselves in debt because they lost their job and haven't been able to recover fast enough. Whatever the reasons are, there is always a way to find your way out of debt. Whatever way you choose to get out of debt, filing for bankruptcy may be an option. Depending on the severity of debt, an individual may have an option between Chapter 7 and Chapter 13.

If you've started thinking about bankruptcy, you should know that whether or not to file is just one of the decisions you'll have to make. There are others, like whether or not you should file with your spouse. But another important one is whether or not you should file Chapter 13 or Chapter 7 bankruptcy. There are good reasons to file Chapter 13 instead of Chapter 7, and I wanted to share some of them.