Consumer Bankruptcy Lawyers in Normal, Illinois

Find the right Consumer Bankruptcy attorney in Normal, IL

Bankruptcy is a legal procedure allowing a person or business to have their debts absolved, in part or in whole. It is normally treated as a last resort, because, while it can prevent financial catastrophe, it has some huge long-term consequences. This warrants careful consideration of the costs and benefits. Bankruptcy is governed by federal law and handled in federal courts, so the procedural and substantive rules involved in Illinois are often the same as anywhere else in the U.S. However, individual bankruptcy courts have slightly different rules for items such as exemptions, so it would be a good idea to consult with a local Normal, Illinois bankruptcy lawyer beforehand.

Chapter 7 Bankruptcy in Normal, Illinois

In Normal, Illinois, there are 2 commonly-used forms of consumer bankruptcy: Chapter 7 and Chapter 13. Chapter 7 requires that a certain percentage of the debtor's property be liquidated to pay off at least a small part of their debt. However, many types of property are exempt, and do not need to be liquidated, such as cars, homes, insurance policies, and retirement accounts.

Once qualified assets are sold, and the money turned over to the creditors, most remaining debt is absolved. However, there are certain types of debt that cannot be absolved in bankruptcy, including student loans, taxes, child support, and criminal fines. If most of your debt is non-dischargeable, it may not be a good idea to file for bankruptcy in Normal, Illinois.

Chapter 13 Bankruptcy in Normal, Illinois

In Normal, Illinois, chapter 13 is very different from Chapter 7, and may or may not be the best option for you, depending on your situation. Chapter 13 bankruptcy does not excuse debt, it restructures it. This involves a court coming up with an altered repayment plan designed to be manageable for the debtor. This new plan sets aside the terms of the original contracts that created the debt in the first place. This creates a new payment structure, normally involving a single monthly payment, that the debtor should find manageable.

Which Type of Consumer Bankruptcy Should I File in Normal, Illinois

Which Bankruptcy type to file under depends heavily on the facts of each particular case. If you have a steady stream of income (enough to make a payment plan manageable), and a large amount of non-exempt property that you don't want to part with, Chapter 13 may be best for you. If you don't have a steady income or large amounts of non-exempt property, you may be better off filing for Chapter 7.

Regardless of your situation, you should speak with an attorney in Normal, Illinois who is experienced in bankruptcy before making a decision. They will be able to advise you of your options, and the likely outcomes of each one, allowing you to make a much more informed decision.

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Life in Normal

Normal is located in McLean County, Illinois. It was named after the Illinois State Normal University. Normal is located near Bloomington, Illinois; both Bloomington and Normal together are known as the "Twin Cities."

Attractions include the Children's Discovery Museum, the Illinois State University Planetarium, the Bloomington-Normal Constitution Trail, the Ecology Action Center, Braden Auditorium, and the Prairie Fire Theatre.

Some interesting facts about Normal are that the original Steak'n Shake restaurant opened in Normal. Also, Mitsubishi's only North American facility is located here!

Normal is also home to many attorneys who are competent in their respective practice fields. Thus, no legal need of any Normal resident will be left unattended.

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