Manage Your Debt with Chapter 7 Bankruptcy in Pekin IL
Whether from hospital bills, credit cards, student loans or extraneous spending, we all encounter debt at some point in our lives. However, not everyone has the means to overcome said debt. If this sounds familiar to you, where you can’t seem to get a handle on your financial situation, you still have options. And when all else fails, filing for bankruptcy might be your last choice. In this case, Stephens Fiddes McGill & Associates, P.C. can help you manage your debt through Chapter 7 bankruptcy in Pekin IL.
What’s Chapter 7 Bankruptcy?
There are multiple types of bankruptcy, many for individuals, some for businesses, and others more specific to certain financial situations. However, Chapter 7 bankruptcy focuses on individuals and families. Chapter 7 deals with the liquidation of assets to pay off your remaining debt. And whatever debt is left after liquidating assets, Chapter 7 bankruptcy will forgive it (with a few exceptions).
What Chapter 7 Does and Doesn’t Cover
For those with little property and an income under the state median, Chapter 7 might be your best bankruptcy option. As such, Chapter 7 will help pay off or forgive debts such as:
- Credit Card Debt
- Personal Loans
- Medical Bills
- Utility Bills
- Car Loans
- Debt Collection Agencies
However, if going the route of Chapter 7 bankruptcy in Pekin IL, you must consider what debts cannot be forgiven. Even after the liquidation of assets, you are still responsible for:
- Student Loans
- Child Support
- Tax Payments
- Post-Petition Debts
- Court Fines & Penalties
The Good and Bad of Chapter 7 Bankruptcy Filing
Ultimately, the bankruptcy attorneys of Stephens Fiddes McGill & Associates will only recommend bankruptcy once all other options have been exhausted. As such, we can help negotiate with your creditors or advise you to a credit counseling agency. Though, if it comes down to bankruptcy, you can expect advantages and disadvantages such as:
The Good:
- Easy to file for
- Stops harassment from debt collectors
- A dischargement of nearly all your debts
- Protection of some property and assets (such as vehicles)
- Stops lawsuits
- No wage garnishment
The Bad:
- Your credit score will take a hit
- Your bankruptcy is accessible to the public
- Liquidation of assets (valuables, collectibles, real estate, etc.)
- Some debt will remain
Talk with Our Team
Schedule a free consultation with Stephens Fiddes McGill & Associates, P.C. today, and we can discuss your path going forward with Chapter 7 bankruptcy in Pekin IL. Or, to learn more about our additional legal services, you can contact us today at 309-637-5297. Also, our office is located at 456 Fulton St, Ste 222, Peoria, IL 61602.