Discharging Past Debt Judgements Through Bankruptcy
Access to credit, combined with financial difficulties, can quickly lead
to serious debt problems. The principal and interest add up fast, especially
when you are relying too much on credit. Before long, it becomes difficult
or impossible to ever pay down the balance. Then the creditors descend
with an endless barrage of phone calls, threats and legal actions.
This is nothing less than psychological warfare. Creditors are known to
hire psychologists and psychiatrists to gain an edge in collection efforts.
It sounds like science fiction, but it's true. (See the
Wall Street Journal article on the tactical use of social psychology by the debt collection industry.)
If you are sinking into the quicksand of debt, the award-winning attorneys
at Sulaiman Law Group, LTD, can help you eliminate debt to get a fresh
financial start. We have represented individuals and couples across the
Chicago area, including professionals, business owners and other high earners.
Contact us online or by telephone at 312-313-1613 to speak with an experienced Oak Brook
Dischargeable Debts and Judgments
The federal Bankruptcy Code recognizes some debts as dischargeable (unsecured
debts) and other debts as never dischargeable except under extreme hardship.
There are also gray areas of debt (taxes, judgments, etc.), which may or
may not be eligible for discharge depending on the facts of your case
and the skill of your lawyer. The attorneys of Sulaiman Law Group, LTD,
excel at maximizing the amount of debt our clients can legally discharge
through bankruptcy. Discharge in this context means forgiveness of debt.
Our clients routinely shed tens to hundreds of thousands of dollars, sometimes
millions of dollars, in qualifying debts. Some clients are able to discharge
debts directly through a
Chapter 7 bankruptcy. Other clients pay back a fraction of their debts through a
Chapter 13 or
Chapter 11 payment plan.
Examples of dischargeable debts:
- Credit cards and charge cards
- Medical bills
- Personal loans (unsecured loans or lines of credit)
- Income taxes at least three years old
- Many civil judgments
Secured and Unsecured Debts.
Examples of generally nondischargeable debts include debt secured by collateral
(mortgage or car loans),
student loans, recent taxes, child support and alimony, judgments for injury or death,
and criminal fines and fees. Our knowledgeable Illinois licensed lawyers
can answer your questions about any particular debt.
After buying a dental practice in the Chicago suburb of Naperville, Nick
and Nora* buy their dream home in Bolingbrook, Illinois. They are soon
overextended, maxing out several credit cards during home renovations
and ramp-up of the practice. Meanwhile, they are hit with legal fees and
a judgment when Nick is sued by his former business partner. In a Chapter
7 bankruptcy, they discharge $51,000 in credit card debt plus the $28,000
civil judgment. The fresh start allows them to retain their new home and
focus on their now-thriving business. They even sever personal liability
on their home and, so long as they continue paying, will be able keep
Relief From Creditors and Freedom From Debts
Filing for bankruptcy provides instant relief from creditor harassment,
collection efforts and legal actions against your assets. That alone brings
great peace of mind. The actual discharge or reduction in debt allows
you to meet your nondischargeable obligations and get back on financial track.
Our Chicago bankruptcy lawyers can identify your dischargeable debts and
walk you through all your debt relief options, including alternatives
Contact our Oak Brook law office online or call
312-313-1613 to arrange a consultation.
We are a debt relief agency. We help people file for bankruptcy relief
under the Bankruptcy Code.
*Nick and Nora are fictitious characters created for the purposes of explaining
common bankruptcy and debt scenarios.