Debt Levels an Ongoing Problem for Chicago Consumers and the Nation
Marketwatch.com reports that Americans have become more diligent about eliminating debt and increasing savings at the same time that the federal government continues to expand it.
Chicago Bankruptcy Lawyers understand the challenges and stress facing families struggling with unmanageable debt loads. The reality is that ever-increasing debt can make life devastating and cause not only financial problems, but also mental and physical hardships.
Between the 1980s and 2000s, Americans cut back on debt and in the same time period the federal government increased its debt from $1 trillion to $14.3 trillion. The government is again having to decide whether to increase the debt ceiling to keep itself running. Some estimates show the country's debt increases $2.5 million every minute.
While that may make your personal debt situation seem like nothing, your "debt ceiling" is set by lenders and banks, who employ creditors to collect unpaid loans. If your situation spirals out of control, you can expect a battle to fight off foreclosure and bankruptcy. Trying to balance your personal budget and paying off debt is the first step to trying to get back on track, Marketwatch says.
Valiant attempts to consult with credit counselors and cut out unneeded expenses are good plans to cutting back on debt, but often it isn't enough. That's when Chicago bankruptcy attorneys can be helpful in providing you direction on how to eliminate your debts.
Bankruptcy doesn't have to be a scary word. While it has a negative connotation, Chicago bankruptcy attorneys have seen this legal process save many houses from foreclosure and eliminate years worth of debt that otherwise would have sunken a family financially.
In Chicago, Chapter 7 bankruptcy typically best works for people who meet certain income-to-debt thresholds.
Chapter 13 bankruptcy in Illinois, however, is better suited for people with a lot of debt, but who own homes and other large assets. Chapter 13 can stop a foreclosure, for instance, and help you keep your home. It requires a payment plan, usually over 3 to 5 years, to pay back your debts, but it allows you to keep your home.
Bankruptcy law is complex and relies heavily on your personal situation. There is no cookie-cutter bankruptcy advice out there. But DebtStoppers attorneys have a vast amount of experience in this area of law and are available to help you figure out the best option for you and your family.
If you need to speak to a Chicago bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis.