Rockford Bankruptcy Lawyers

Rockford Residents Struggling

News of mounting property tax delinquencies make headlines as Rockford residents are struggling to pay their bills and save their homes from foreclosure.  The projected recovery will eventually come, but it will come too late for many who will be forced to lose their homes and/or file for bankruptcy.  Bankruptcies filed in 2008 hit record levels with over 56,000 in Illinois alone, and over 97% of those filed by consumers.    It is estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in 2009.

Bankruptcy Legal Advice in Rockford

The Federal Bankruptcy Law involves processes, procedures and evaluations which can be complex and confusing, including major revisions made in 2005.  Seek the advice of a Rockford law firm with specific long-term experience in Illinois bankruptcy matters.  Check references, if possible.  A competent Rockford attorney will help you weigh your different options, make informed decisions, help you protect the security of your family and reduce your stress, while facing the realities of the situation.  

A Straight Bankruptcy – the Most Common Bankruptcy Filed in Rockford

Chapter 7 is the “fresh start” chapter of the Bankruptcy Code and most commonly used.  This filing results in a fair distribution of your available nonexempt property to creditors.  Included in this process is a “means test”, used to determine your ability to pay your creditors, verifying whether Chapter 7 is appropriate or indicating that you should be filing Chapter 13.  Median Family Income by Family Size and current poverty guidelines are factors evaluated when determining appropriate filing status for a given situation.

Certain Debts Will Not Be Discharged in Your Rockford Bankruptcy:

·         Taxes owed to government agencies, such as the I.R.S., State, County, etc.

·         Student loans (unless undue hardship can be proved),

·         Debts incurred after the bankruptcy is filed

·         Debts owed to a spouse for divorce-related obligatory expenses

·          Debts not listed or scheduled or which the debtor waived discharge

·         Debts for willful and malicious injury by the debtor to another person or property owned by another 

Rockford Bankruptcy Alternatives

Contact your creditors to try to work out payment arrangements that you can manage.  Contact the non-profit Consumer Credit Counseling service to get help with a manageable repayment plan.  Sell as many assets as you can and pay down your debt to a manageable level.  Debt consolidation may be considered, but approach this option with caution to make sure it actually helps your situation.

Rockford Bankruptcy and You

Rockford residents continue to suffer, as the State’s economy struggles to recover.  If you are considering filing for bankruptcy, decisions you make and actions you take now can have a positive or negative effect on the outcome of your bankruptcy proceedings.  Although some filers elect to handle their bankruptcy on their own, The U.S. Bankruptcy Court cautions that“Bankruptcy has long-term financial and legal consequences -- hiring a competent attorney is strongly recommended.”Click here to find Illinois attorney resources in your area. 

• If you are at risk of filing for bankruptcy or already in the process, Submit Your Case for a Free Review from a Bankruptcy Attorney in Rockford, IL.