Consumer Bankruptcy Lawyers in Springfield, Illinois

Find the right Consumer Bankruptcy attorney in Springfield, IL

Bankruptcy is a legal procedure allowing a person or business to have their debts discharged, in part or in whole. It is usually treated as a last resort, because, while it can prevent financial catastrophe, it has some major 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 Springfield, Illinois bankruptcy lawyer beforehand.

Chapter 7 Bankruptcy in Springfield, Illinois

In Springfield, Illinois, there are 2 main forms of commonly-used consumer bankruptcy: Chapter 7 and Chapter 13. Chapter 7 involves liquidation of some of a debtor's assets. It requires that a certain percentage of the debtor's property to be sold to pay off as much debt as possible. The majority of property that most people own, however, is exempt. This usually includes homes, vehicles, retirement accounts, and others. These are not available to creditors.

Once all non-exempt assets are sold, and the money from the sales turned over to the creditors, most remaining debt is discharged. But some types of debt cannot be discharged through Chapter 7 bankruptcy. These include child support payments, student loans, and criminal fines, among others. If most of your Springfield, Illinois debts are not dischargeable, you might want to consider options other than bankruptcy.

Chapter 13 Bankruptcy in Springfield, Illinois

In Springfield, Illinois, Chapter 13 is quite different from Chapter 7. Chapter 13 may or may not be the best choice for you; this depends on the facts of your particular situation. Chapter 13 does not eliminate any debt, but it creates a new payment plan that should give the debtor some breathing room. Usually, all of the debts are consolidated into 1 periodic payment. While this might make it take longer to pay off the debt, if the debtor is willing to make a few sacrifices, the plan should be manageable.

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

Which Bankruptcy type to file under depends heavily on the facts of each individual 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 Springfield, Illinois who is experienced in bankruptcy before making a decision. They will be able to advise you of your options, and the likely consequences of each one, allowing you to make a much more informed decision.

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Life in Springfield

Springfield, Illinois is the capital of the state of Illinois. It is also the county seat of Sangamon County. Its current population is approximately 116,000 people.

Springfield, Illinois is best known for being the longtime residence of President Abraham Lincoln, who worked as a lawyer in Springfield, Illinois before being elected president and moving to Washington, D.C.

Because it is the capital of a large state, but relatively small in population, the biggest employer in Springfield, Illinois is the state government. The state of Illinois employs a large number of Springfield, Illinois lawyers. They serve as public defenders, prosecuting attorneys, and attorneys that represent the state in civil matters.

On top of that, there are many Springfield, Illinois attorneys in private practice. So, if you need legal advice, or some other legal service, you should start by contacting a qualified Springfield, Illinois attorney.

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