The decision to file for bankruptcy in Chicago can be due to many reasons. The most common reason is the credit card bankruptcies. Credit card is the riskiest form of credit if not managed well. Medical bankruptcy can result due to lack of medical insurance, chronic illness or excessive medical bills.
Credit Card Bankruptcy In Chicago
While credit cards are ideal for emergency situations, they have the inherent risk of uncontrolled spending that leads to credit bankruptcies. If you are piling up the loan on credit cards, you probably are also paying high interests. The interest rates on the credit cards can vary from 7% to 25% based on your credit rating or if you miss your payments.
If you find yourself in a situation where you have a considerable credit card debt, a mortgage, other auto and personal loans you might be heading towards the path of bankruptcy. You will have to consider Chapter 7 or Chapter 13 of the bankruptcy code. Under both these chapters the credit card debt is dischargeable in most cases. Chapter 7 means that the credit card companies will accept whatever they could. A successful discharge for Chapter 13 means that as per your payment plan you have repaid all of your creditors.
Medical Bankruptcy in Chicago
Medical bankruptcy is mostly suffered by an individual and you can file bankruptcy under Chapter 7 or Chapter 13. Bankruptcy is a final resort and federal courts will recommend trying out all the alternatives first.
Call your medical providers to check if you can work out a payment plan. Most of the medical providers understand the high cost of medical services and are willing to work on a payment plan as it has more chances of getting paid instead of a bankruptcy proceeding.
Be wary of contacting a debt relief program or debt settlement program as you may be liable for an extremely high rate of interest. It’s always better to contact a lawyer. One other is to apply for financial assistance from some medical institutions. The amount of financial aid will depend upon your financial circumstances and the loan amount you owe.
Student Loan Bankruptcy in Chicago
Student loans can easily add up to several hundred thousands of dollars in loans. These loans need to get paid in a timely manner.
Bankruptcy filings provide various options but it also considers if your debts are dischargeable or non-dischargeable. For individuals, student loans are considered to be non-dischargeable debt. This means that if the main reason for your bankruptcy filing is student loan then you might not find the relief you are looking for. It can still help you with asking your other creditors to wait while you concentrate on your student loans.
There could be several other causes for bankruptcy in Chicago. The important thing is to know the next steps. For more information, consult with the legal team at ledfordwu.com.