Get Help Settling Your Debt in Illinois

You can get help settling your debt in Illinois by reviewing several options. If you are struggling now, here’s what you need to know:

Debt settlement

One of the options open for you, if you need help settling your debt in Illinois is going for a debt settlement. It would be best to negotiate with your creditors to settle your debt for less than what you owe them. This is a good option if you have a significant debt and need help to make payments. However, applying for a debt settlement will create a negative mark on your credit score, so please consider this fact before you use this option.

Consumer Debt Relief Act

Because of the signing of the Consumer Debt Relief Act, millions of Illinois residents struggling with consumer debt can now breathe a sigh of relief.  This act makes it easier for consumers to make payments and gain financial independence by having a cap on interest rates and reducing the timeframe to collect debts.

Bankruptcy

Bankruptcy is a legal process that is also available for you. Here are the different types of bankruptcy:

1. Chapter 7 bankruptcy is a legal process that allows individuals to liquidate their assets to pay off their creditors. Once the court approves the application, all unsecured debts like medical bills and credit cards can be discharged.
2. Chapter 13 bankruptcy allows individuals to reduce their debt and pay it off with a repayment plan while keeping their home, car, and personal properties. To qualify for this, you must prove that you have a consistent income flow to make the payments for your repayment plan. You must also pass the Illinois Means test. This test will help determine your disposable income and other factors determining your repayment terms.
3. Chapter 11 bankruptcy is usually filed by corporations and business people seeking to reorganize their assets and debts. This “reorganization” bankruptcy will allow the company to stay in business while restructuring its obligations. This will help keep the business alive while paying its creditors over time.