Bankruptcy Facts

You Have Rights!

Are you being harassed by debt collectors? These are laws that govern how and when debt collectors may contact you. The Bankruptcy attorneys at Bruning & Associates, P.C. can enforce your rights, protect you, and make sure that debt collectors respect you and treat you fairly. Don’t shoulder the burden of financial difficulty alone.

Unsecured Debts

Unsecured debts are financial obligations like credit card debt, medical bills, health club membership dues, utility payments, and other financial obligations for which no property has been pledged as security. Most unsecured debts may be eliminated (discharged) in a Chapter 7 bankruptcy. The amount of unsecured debt may be substantially reduced in a Chapter 13 bankruptcy.

Secured Debts

Secured debts are financial obligations like home mortgages and automobile loans that are secured by a lien in favor of the lender against your house or your car.  Secured debts are generally not dischargeable in a Chapter 7 bankruptcy, however, some secured debts may be reaffirmed in a Chapter 7 bankruptcy.  A Chapter 13 bankruptcy may be used to establish a repayment plan permitting you to bring current overdue amounts for secured debts like mortgages and automobile loans.

Reaffirmation

In certain cases, you may be able to keep certain property pledged to secure a debt, such as a car, house, or furniture, by signing a voluntary Reaffirmation Agreement. In order to keep something like your house or car in a Chapter 7 Bankruptcy, you must first bring those debts current (pay off all overdue amounts). Also, you will be required to show your ability to reasonably pay the monthly amounts required by the reaffirmation agreement.  You will still be obligated to pay the reaffirmed debts after the Bankruptcy, and you will not be legally permitted to discharge those debts for a period of eight years.

Non-Dischargeable Debts

These are some debts that may not be discharged under the Bankruptcy Code. Those can include debts like student loans, child support, maintenance (known as spousal support or alimony), and certain taxes. The Bankruptcy attorneys at Bruning & Associates, P.C. know the law, and help you determine if your debt is non-dischargeable.

Bruning & Associates, P.C. has offices conveniently located near you in Chicago, Schaumburg and Crystal Lake, Illinois. Please contact Bruning & Associates, P.C. for a free consultation regarding your Bankruptcy.

Serving Bankruptcy clients in Northern Illinois, including Cook County, DuPage County, Kane County, McHenry County, Lake County, Will County, Boone County, DeKalb County, Kendall County, LaSalle County, and Winnebago County.