Illinois Bankruptcy Law allows those in need to regain control over their personal finances. There are several options to choose from, however, the most common options for consumers (non-business) are Chapter 7 and Chapter 13.

Chapter 7 is the typical, “wipe the slate clean” bankruptcy. In essence, Chapter 7 wipes out unsecured debts such as credit cards, medical bills, old utilities, repossessed vehicles, and even judgments. Chapter 7 was created for those who cannot repay their debts in a timely fashion without putting a serious financial strain on themselves and their families.

Chapter 7 does affect your credit, as does anything that relates to your finances. For example, not paying your bills on time affects your credit in a negative way; paying off a credit card affects your credit in a positive way. Chapter 7 typically wipes out the majority of debts, which actually HELPS your credit more than most people think!

Chapter 13 is a consolidation bankruptcy, which basically creates a payment plan for you to pay the bills back over time. Chapter 13 immediately stops foreclosure of your home and repossession of your vehicles.

With either Chapter 7 or 13, Illinois bankruptcy laws typically allow you to keep your home and vehicles. Both Chapters allow you to begin rebuilding your credit immediately, which is essential to making major life purchases such as a home or a car.

Moreover, most people who file for bankruptcy can and do purchase homes and cars within 2 years of filing for bankruptcy. This makes sense, since the potential mortgage or vehicle creditor will see that the person no longer has any bills after filing for bankruptcy.

Another interesting point is that many famous millionaires have filed for bankruptcy BEFORE making their millions of dollars. Henry Ford, of The Ford Motor Company; Milton S. Hershey, of Hershey’s Chocolate; Henry J. Heinz of Heinz Ketchup; even P.T. Barnum, all filed for bankruptcy before having tremendous success.

Bankruptcy is not something to be ashamed of; rather, it is a vehicle/business decision that can improve your physical and mental well-being. Moreover, bankruptcy can create a better life for you and your family by taking the stress of prior financial mistakes and wiping them out.

Please contact Select Legal today, to further explore your options regarding Illinois bankruptcy laws, filing bankruptcy, or debt consolidation.