Debt is not a problem when you can pay it in time. If it’s not the case and the past-due credit cards, loans, and mortgages overwhelm you, you need an efficient solution. Fortunately, the state of Illinois allows partial and even full debt elimination procedures. Read on to learn the details.
Debt Solutions Available in Illinois
Similar to other states of the USA, Illinois offers its citizens to reduce or eliminate debt in two different ways. Eliminating debt in Illinois can be done by filing for:
- Chapter 7 Bankruptcy – this bankruptcy procedure allows you to reduce or eliminate many types of unsecured debts
- Chapter 13 Bankruptcy – this instrument is used to negotiate the amount of debt down as much as possible and split the rest into smaller monthly payments for the next 3-5 years. Chapter 13 doesn’t set you free from debt entirely but makes it much easier to deal with.
To select the right debt cancellation solution, you have to thoroughly analyze your financial situation with a professional bankruptcy attorney. Below are the most common situations when both solutions are most useful.
Chapter 7 works best when:
- You don’t have large assets, such as expensive cars or property;
- Your family earns less than the median income in your state is for the current year;
- Your debt is unsecured and mainly consists of credit card debt, medical bills, and personal loans.
If your case is different from the situations listed below, you should compare your situation with Chapter 13 requirements:
- Your income is equal to or higher than the state median income, but you need more time for payout;
- You have temporary financial complications and need a stretch of payments over an extended period;
- You have types of debt that cannot be discharged by the Chapter 7 process.
Illinois Debt Collector Laws
You should always remember that the law of Illinois protects citizens from aggressive collection procedures according to the Fair Debt Collection Practices Act (FDCPA) and the Illinois Collection Agency Act (ICAA). The first act applies to all collectors in the country, while the second limits the actions of companies that are primarily involved in debt collection. Under ICAA, debt collectors are prohibited from doing the following things:
- use any kind of offensive language;
- threaten you with the prosecution;
- threaten you with the publication of your debt information (this is confidential information);
- pretend to be lawyers and use fake personal documents.
Even if your collectors don’t perform any of these illegal practices, dealing with them can be very stressful, so we recommend you file for bankruptcy as soon as possible to legally stop collectors from contacting you by enabling the automatic stay.
The earlier you start the debt cancellation process, the faster results you get. Don’t let the creditors take away your property and seek professional help to retain as many assets as possible without the need to pay out the entire debt body. The law is on your side!