More Consumers Turn to Chapter 7 Bankruptcy to Relieve Debt, Say Chicago Bankruptcy Attorneys
The recession may be good for something after all: getting rid of debt.
On the one hand, tough economic times are making consumers more reliant than ever on credit, say Chicago bankruptcy attorneys. Many of us have been piling new debts on top of the balances we carried before the recession hit. On the other hand, that extreme financial distress is encouraging consumers to do something many of us once thought unthinkable - file for bankruptcy.
And, lo and behold, we're finding out that it works.
Bankruptcies in February were up 14% over last year, according to the American Bankruptcy Institute. Most of those filings were for Chapter 7 bankruptcy, which can discharge some or all of an individual's unsecured debt - in other words, debt that isn't tied to a piece of collateral, like a house. Credit card debt is the most common form of unsecured debt; medical bills and IRS debt are some other examples.
There's another reason that Chapter 7 is growing in popularity. It can help you eliminate the debt that's dragging you down even if you have little to no income. That's right, if you've been unemployed, if you've been living paycheck to paycheck, if you've had to take a pay cut, you can still eliminate unsecured debts with Chapter 7 bankruptcy. And you can often do it in just months - in some cases, weeks.
Of course, maybe you do have a steady job but the economy combined with your debt is making it difficult to pay the mortgage every month. You've got another option - Chapter 13. Filing for Chapter 13 can legally prevent your house from going into foreclosure while you find an appropriate payment plan for your debt.
Many folks avoid bankruptcy because they find it overwhelming. But the truth is, it's the exact opposite. The right bankruptcy plan can simplify your life by freeing you from the responsibility of debt. Find out how bankruptcy can change your life when you sign up for a free one-on-one debt analysis with a Chicago bankruptcy lawyer. And join millions of other Americans who have turned a bad economy into a fresh start.