Everyone is very aware these days of the need to look after finances in a careful and planned way. Because of the economic downturn around the world, people are really finding it difficult to pay off their debts and keep their heads above water, metaphorically speaking. Many will find themselves unable to do this, of course, and it is the lawyers who may end up giving information and help to allow people to at least keep their homes. For those who are having this difficulty, look up ‘Chapter 7’ to get some ideas of what can be done.

What this section of the law does, and the one name 13 too, is to allow the courts to work out a plan to solve the huge debt burden for those who are literally sinking under it. The person who is suffering may well have to give some very personal information about him or the family and they will certainly have to write down all the outgoings and cash coming into the home. Some people feel this is a little demeaning and do not like it at all, but it is a way of solving the problem so that the stress can be taken away. In fact, some of the expenses of the household will not be allowed anyway. This could be gym memberships or recreational expenses etc. Only the most important expenditure will be allowed and this could include the mortgage or rent, food bills to some extent, school fees if appropriate and medical bills etc.

Once this has been done, and proof will have to be provided, then the cash coming in will be compared to the minimum amount the family needs to exist each month. If there is a shortfall, and some of the debt to be paid is credit card based, the court has it in their power to wipe out this debt completely.

If there is more money coming in than the bills going out are, they will all be amalgamated and a workable payment plan sorted out. The householder will not have to pay to the end of the debt in some cases but just for a few years. However, all harassment will stop from this time and he will not be slapped with late payment charges or penalties either. Once the payment period is over, and this is monitored closely, then he will be out of debt.

This should not be done lightly, of course, but the lawyers are there to guide the individual through this process. This was created to stop people losing their homes and ending up literally on the street. It is not the fault of anyone that the world went into recession so the government put in place a plan to help the genuine people to retain as much as they could. However, this kind of plan is only on offer once every seven years or so. It is vital therefore to only use this when there is no other alternative.

Penny Lane recently spent time researching bankruptcy with the help of a Chicago Chapter 7 expert. She searched the term North Riverside Chapter 7 to learn more about it.

For more information about Chapter 7 go to
http://www.schottlerlaw.com/consumer_bankruptcy.cfm .

Author Bio: Penny Lane recently spent time researching bankruptcy with the help of a Chicago Chapter 7 expert. She searched the term North Riverside Chapter 7 to learn more about it.

Category: Legal
Keywords: Chicago Chapter 7,North Riverside Chapter 7