Smith Ortiz P.C. Articles Getting a Discharge of Debt through your Chicago Bankruptcy

Getting a Discharge of Debt through your Chicago Bankruptcy

By Smith Ortiz, P.C.  Sep. 16, 2013 11:35a

Eliminating overwhelming debt that cannot be managed any other way is the goal of most people who consider filing for a personal bankruptcy. The stated purpose of the bankruptcy process under federal law is to give the honest debtor a fresh start. For those who are eligible for a Chapter 7 bankruptcy, which is the most common type of personal bankruptcy, that means an elimination of unsecured debt such as credit card balances, medical bills, dental bills, past-due utility bills, and personal loans such as payday loans. These are forms of debt which are not tied to any collateral, such as a mortgage or car loan. In most cases, the vast majority of those who file a Chapter 7 petition receive a discharge of the unsecured debts they list on the bankruptcy paperwork they submit to the court.

For those individuals who do not meet eligibility requirements for a Chapter 7 bankruptcy, which is a liquidation type of process, a Chapter 13 bankruptcy petition can be filed. This type of bankruptcy is a repayment plan which must be approved by the court. In this type of bankruptcy, you will submit one affordable payment each month to the court to repay your creditors. The plan will last 3 to 5 years and, at the end of the repayment plan duration, whatever debt remains will be discharged by the court. In this type of bankruptcy, you will have paid back at least a part of your outstanding debt during the course of the plan.

During both a Chapter 7 and a Chapter 13 bankruptcy, you will be protected from any contact by creditors about your debts through an automatic stay imposed by the court. This fact alone can bring relief from the stress of being unable to meet your financial obligations.

Chicago Bankruptcy Attorney

Being financially insolvent is a very stressful situation which can seriously impact your emotional health, family relationships, and future. In such a situation, you owe it to yourself to get all of the information you need to make the right decision about how to achieve the debt relief you need. This can be done through proper sources such as an experienced bankruptcy attorney.

For those in the Chicago area who are facing this type of financial crisis, Smith Ortiz, P.C. is an experienced and knowledgeable team of bankruptcy attorneys. This legal team has more than 26 years of experience with extensive backgrounds in law, tax, and finances. They are dedicated to the proposition of helping you achieve the best legal solution for your particular circumstances. Whether you are facing the potential loss of your home or car, wage garnishment, or creditor harassment, get the legal advice and guidance you need to move towards a brighter financial future. Contact the firm for a free consultation about your financial scene today.

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