Bankruptcy Because of COVID 19 Shutdowns in Chicago: People Get a Fresh Start and Relief from Debts
More than two years after “flattening the curve” the COVID shutdowns still impact many hard-working Chicago residents trying to rebuild their financial futures after job losses, work-from-home orders, and now inflation and high prices. For whatever reason, and many reasons beyond peoples’ control, bankruptcy becomes the only way to stop collection activity including wage garnishments, repossessions, and property seizures.
In Chicago and the surrounding suburbs, when bad financial problems happen to good people, bankruptcy can be a solution that gives people a fresh start without the bad debt they can no longer afford to pay. Joseph Wrobel, Limited is the bankruptcy law firm that helps regular people get out of debt and stop the collection calls and creditors with Chapter 7 and Chapter 13 consumer bankruptcy cases. Financial stress and anxiety can make it nearly impossible to get ahead, not to mention chasing debt that people will never be able to pay off. People who file bankruptcy cases get credit, cars, and homes after bankruptcy with no problems when they become a better credit risk.
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If you have heard about the benefits of bankruptcy cases and want to find out how Joseph Wrobel, Limited can help stop the collection calls and get out of debt, call (312) 781-0996 and schedule an appointment today. Every step closer to financial freedom is a step for you and your family to live the life you want and deserve.
Inflation and High Gas Prices Affect People Considering Bankruptcy
Inflation is the rate of increase of prices over time. The cost of living is always on the rise and while inflation usually is low, around 1 percent, during certain conditions inflation is greater. Now is one of those times when inflation is around 9 percent and people are feeling the pain of increased prices not only at the gas station but also at the grocery store and in almost all other parts of the economy.
The problems happen when the costs of consumer goods, food, and fuel, increase quicker than the rate of pay and job salaries. So, people are forced to stretch their paychecks even farther than before. And now with the increased price of gas, just getting to work is becoming so expensive that people cannot afford to pay to park or maintain their vehicles. In some cases, people let their insurance coverage lapse, and if then they have a car accident, their cascading financial troubles lead them to make important decisions, like filling a Chapter 7 or a Chapter 13 bankruptcy to get out of debt and get a fresh start, especially after COVID 19 shutdowns in Chicago.
People Who Stopped Paying Credit Cards Bills, Considering Bankruptcy and Other Options
When money is short and the decision is whether to pay for food and fuel, credit card payments often slide. And even though people have the best intentions about making payments, they can fall so far behind that it might make more sense to let the account be closed and go to collections. If the credit card balance is enough, the bank might file a lawsuit to get a money judgment they can try to collect from you.
There are a few options for people who owe money to credit card companies and can no longer afford to pay the bill, for whatever reason, such as job losses and money problems from the COVID 19 shutdowns. If you do not have any major assets or income to seize, you might be judgment proof and there’s no way to collect money from you. Or you may have assets you want to protect, and bankruptcy is a better option to eliminate credit card debt you cannot pay. A word to the wise, if you are considering bankruptcy, be careful not to do anything that the bankruptcy trustee might not approve of, such as quickly maxing out a credit card right before filing bankruptcy. Especially in a Chapter 13 reorganization bankruptcy, this type of situation could cause a problem and the individual might have to pay back more of that credit card debt than expected.
Filing Chapter 7 or Chapter 13 Bankruptcy Triggers the Automatic Stay and Stops All Collection Activity
Many people who file bankruptcy in Chicago say that the anticipation of a bankruptcy is the most stressful part of the process. In Chicago, once the bankruptcy lawyer has all the information to file the case, there is little else for the individual to do. In most cases the only meeting the individual needs to attend is the meeting of the creditors who have the right to object to any part of the bankruptcy, and whether and how their debts are canceled in part or whole in a bankruptcy discharge.
When people learn about the Automatic Stay, they are thrilled to learn that once they file their petition for either Chapter 7 or Chapter 13 bankruptcy, the creditors must stop all collection activity. That means that the phone calls stop, the car repossessions stop, the process servers stop, and the wage garnishment proceedings must stop.
Past Due Car Payments Might Cause Some to Consider Chapter 7 or Chapter 13 Bankruptcy
People who are being threatened by their car finance company and are being told the repo man is just down the street can finally relax when they learn how to keep their cars with a bankruptcy filing. Whether Chapter 7 or 13, there are options to help you keep your car in bankruptcy after COVID 19 shutdowns in Chicago. In either type of bankruptcy filing, there is an option to sign a reaffirmation agreement with the lender. A reaffirmation agreement allows you to go through your bankruptcy and agree to keep making payments on the vehicle. And if bankruptcy frees up more of your monthly money, then it is easier to keep up with the car payments. Remember that as soon as you file a bankruptcy case, the Automatic Stay provision kicks in and creditors are prohibited by law from continuing any collection activity against you.
If you file for a Chapter 13, the bankruptcy trustee will work with you and the finance company to figure out how much you are going to pay on the car payment and for how long. When you are in a Chapter 13 reorganization bankruptcy, it takes three to five years of making payments to the trustee. A bankruptcy trustee might effectively rewrite your car loan based on your vehicle’s current market value, and refigure the loan so you can get current and caught up more reasonably when you aren’t upside down or paying off excessive interest and late fines and penalties.
Learning from Experience: How to Prevent Getting Behind in Debt After Bankruptcy
Chicago bankruptcy attorneys like Joseph Wrobel are very helpful in letting people know some of the best ways to get back on their feet and find financial success again, after a bankruptcy. Mr. Wrobel often explains that what is most important is everything you do after bankruptcy. People buy cars, rent apartments and homes, and even buy property without credit cosigners after filing for bankruptcy. The important thing is to learn important financial lessons and not get into debt or financial trouble again.
And even if we work hard at letting people know how to avoid bad financial traps and bad deals, anything can happen in life and bad things can always happen to good people.
People Love Using Joseph Wrobel Bankruptcy in Chicago and the Suburbs to Get a Fresh Start Today by Dialing (312) 781-0996