What to Do if You Live in Illinois and Have Unnecessary Debts?

There are situations in life when you can’t avoid getting into debt. Some of them are quite serious when you borrow money for medical treatment or utilities. However, the debts can be unnecessary if you have bought something you didn’t need. There are lawyers in Illinois who specialize in this field and provide high-level service. If you can’t cope with debt alone, this guide is intended to help you find a solution.

Get a Consultation With a Lawyer

The first thing you should do when you want to close a debt and can’t do this alone is to get a consultation with a lawyer. It’s sometimes difficult to estimate the situation and find a solution without professional help. Debt lawyers can help you analyze your possibilities and cope with the debt. There are two main ways they can offer, and it’s difficult to say which one is the best. It depends on your particular situation.  

Find a way to cope with a debt

If there is a way to cover your debt by analyzing and changing your spending habits, a lawyer can help you to do this. A professional usually offers to divide all needs into necessary and unnecessary for a particular moment. Then they can create your plan of repayment. This case will work if you have a budget that can cover the debt and can cut the amount of money you spend. However, this case doesn’t always work, sometimes you should file for bankruptcy.  

Consider filing for bankruptcy

When the debt is too large, the only way to cope with it is to file for bankruptcy. After you become bankrupt, you won’t need to communicate with creditors and make payments. The main reason why you should think about filing a bankruptcy is to save your household assets, vehicles, etc. When you become bankrupt, the interest on your debt won’t grow anymore, and you will save your household assets in any case. 

Filing for bankruptcy in Illinois is quite simple nowadays. Many professional agencies can help you with this process. You should get a consultation with bankruptcy lawyers in Illinois before you file a bankruptcy. They will help you to analyze how to do this avoiding possible harm. Of course, bankruptcy should be your last option, but sometimes it is required to save your belongings and start a new life.

How to File for Bankruptcy in Illinois?

Filing for bankruptcy in each case will be different, but there are some basic stages of this process. It’s not so difficult to make these steps with a lawyer, and it takes less time than when you do it alone. You can get a free consultation, but you still have to pay the court filing fee. Here is the process of filing for bankruptcy in Illinois step-by-step. 

1. Collect the required bankruptcy documents

The main documents you should have when filing for bankruptcy are income tax returns and paycheck stubs. Additionally, you should prepare your bank statements, copies of the vehicle titles, and a copy of your credit report from the recent time. You may also need your bills for the last three months. 

2. Complete the credit counseling course

This course is required for everyone who is filing for bankruptcy. It should be completed no more than 180 days before. The counseling agent will talk with you about your financial situation and other options to cope with it. In the end, they will give you a certificate that proves you passed the course. 

3. Fill out the bankruptcy forms

This step you should take with the attorney because they will describe in detail what forms you should file and how to fill them out. 

4. File the forms to the court

When all forms and documents are prepared, you have to file them in court and pay a filing fee. 

5. Send documents to the trustee

You will get the trustee’s contacts and send them the forms to verify all the information. 

6. Complete the second bankruptcy course.

The second course is based on financial management. You should pass it to get a discharge order, so the creditors won’t contact you anymore. 

7. Go to the 341 meeting

Your lawyer will tell you the details about those meetings with the trustee and creditors, which you should attend for about a month after the case is closed.

Get Help With Your Debt

You don’t have to cope with your debt alone. The specialists in Illinois will help you analyze your situation and find the best solution in each case. You can make a plan of repayment together with the attorney and close your debt step-by-step. If the only way is to file for bankruptcy, the lawyers will help you collect all documents and apply for this status.

When you live with debt, it’s difficult to move forward, but you always have a chance to change your situation. 

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