Basic Bankruptcy Information
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"At the end of every seven years, every creditor shall make a release and not exact a debt from his neighbor; it is called the Lord's release." |
Let Us Help You Understand the Bankruptcy Process
Experienced Bankruptcy Attorneys for Individuals and Businesses in Illinois
If you are considering filing for bankruptcy, you likely have many questions about how bankruptcy works and what impact it will have on your future.
At Lathram & Herbert, LLP, in Collinsville, Illinois, and Bankruptcy Advocates, in Carbondale, Illinois, our experienced bankruptcy lawyers can answer all of your questions. Over the years, we have helped hundreds of clients in similar situations — we are fully prepared to carefully guide you through the entire bankruptcy process.
Contact Us
E-mail the Collinsville Office or Call 866-553-1981 toll-free
E-mail the Carbondale Office or Call 866-675-5067 toll-free
Will I Lose Everything If I File for Bankruptcy?
Absolutely not! Unfortunately, this is one of the biggest misconceptions about bankruptcy. Every individual who files for bankruptcy is entitled to keep basic items, including clothing, household furnishings, wedding rings and other personal belongings.
Individuals filing for bankruptcy may use "exemptions" to hold onto personal property vehicles and retirement/pension plans. While these exemptions are not unlimited, they can protect most of the property the average person owns from being taken in bankruptcy.
Please note, filing for bankruptcy can also prevent home foreclosure.
Will Bankruptcy Wipe out All of My Debts?
Bankruptcy can eliminate many — but not all — debts. Many major unsecured debts are usually wiped away in a bankruptcy, including:
- Utility bills
- Medical bills
- Payday loans
- Broken leases
- Credit card debt
- Repossessions
- Unsecured failed business debts
Certain debts cannot be eliminated, including some tax debt, student loans, alimony, and child support payments, as well as debt obtained through fraud.
Will Bankruptcy Ruin My Credit?
Bankruptcy will remain on your credit report for seven years. Most people facing serious amounts of debt, however, already have many late payments or payment defaults on their credit reports, all of which gets erased as part of bankruptcy.
So, in many cases, it is worth the trade-off. After your debts are discharged, you can begin rebuilding your credit almost immediately and are generally eligible for lines of credit within a couple of years.
When Experience Matters, Contact Us
Meet with one of our experienced attorneys to learn more about debt liquidation or debt reorganization.
- In Collinsville, contact us by e-mail or call 866-553-1981 toll-free
- In Carbondale, contact us by e-mail or call 866-675-5067 toll-free
For more information, please visit our firm's bankruptcy practice center or sign-up to obtain our bankruptcy newsletter.
