Bankruptcy

Among our other business law services, Oak Brook Legal Attorneys at Law is a debt relief agency. We help businesses and individuals file for relief under the Bankruptcy Code.

There are various chapters under which you might file, depending on your situation. Each has slightly different eligibility criteria, reporting requirements and levels of support from the court. For a case-specific analysis of which chapter could apply to your situation — or whether you need to file at all — our bankruptcy attorneys are available at (630) 325-5557.

Should you file for bankruptcy?

Businesses and individuals may both file for bankruptcy if they are eligible. There are various factors you might want to consider before you decide whether you want to move forward:

• Current liability levels and interest rates
• Debt consolidation or transfer options
• Eligibility of certain types of debt for forgiveness under the Bankruptcy Code
• Willingness to maintain a repayment plan, if applicable
• The extent to which exemptions cover certain assets
• Estate planning consequences of bankruptcy

Which bankruptcy chapter do you need?

If you decide after a case-specific analysis that it could be in your best interest to file for bankruptcy, the next major decision would be the chapter under which you file. The most typical examples are:

• Chapter 7: Common for individuals with few assets and low income. Excess wealth is sold to settle debts with creditors.
• Chapter 13: Common for individuals or small businesses, especially sole proprietorships. Debt is restructured and you commit to a long-term repayment plan.
• Chapter 11: Common for businesses. It is similar to Chapter 13. However, filing requirements are more complicated, and the court does not provide as much support or oversight when you are developing the repayment plan.

How long after bankruptcy can you get a credit card?

Filing for bankruptcy is likely to have a short- to medium-term negative effect on your creditworthiness. The exact duration and impact would depend on the details of your case.

However, there are still various ways to secure loans, open accounts, make online payments and so on. Examples include secured credit cards or collateralized loans: options that are often available from a wide variety of banks, online financial institutions, savings-and-loans and credit unions.

Get advice from a bankruptcy attorney

Bankruptcy is nothing to be ashamed of or nervous about. It is simply a method of financial restructuring, assisted by and enforced by the court. In fact, the automatic stay will probably alleviate some of the more stressful aspects of being in debt, such as calls from bill collectors and foreclosure actions.

At Oak Brook Legal Attorneys at Law, we aim to make complex choices as straightforward as possible. Call (630) 325-5557 to schedule an initial consultation and get some information that applies specifically to your situation.