Filing for bankruptcy is never the first choice for an individual facing financial hardship. There are negative repercussions that can impact your credit and your borrowing ability. If you are an Illinois resident facing bankruptcy, there are some questions you should answer before deciding to file for bankruptcy protection.
Can you negotiate with your creditors?
While the prospect of talking to your creditors can seem scary, it is worth trying to negotiate a settlement with them. Keep in mind, these creditors would rather receive a smaller amount from you than get the short end of a bankruptcy discharge. While you don’t want to be behind on payments, if you’re already not paying, a negotiation is worth considering.
Are you facing wage garnishment?
If your creditors have already begun garnishing your wages, filing for bankruptcy may be your only option. If you receive a bankruptcy discharge, wage garnishment will have to stop since you will probably begin the process of repaying your creditors. If wage garnishment has been ordered, bankruptcy is your next logical step.
Do you have savings?
Some of your assets are considered protected when you file for bankruptcy. While possible, it is relatively rare for someone to lose a home or vehicle in bankruptcy. However, if you have a savings account, the money in it will be considered in your bankruptcy case.
Do you need legal advice?
Ultimately, the bankruptcy process is a legal one from start to finish. While it is ultimately your decision about whether or not you file for bankruptcy, discussing your options with an attorney is the safest bet for your future.
Finding an attorney who is well-versed in your state’s bankruptcy laws is a wise decision. This attorney can review your assets and your debts and can even help in the negotiation before the bankruptcy process begins.