Filing for bankruptcy is a difficult time for many individuals and businesses in Chicago. It requires understanding complex regulations, finding the right counsel, and making difficult decisions about your future. It also can drastically affect your credit score and current situation. UpCounsel is here to help you make sense of the bankruptcy definition, evaluate your legal options and find the right counsel to provide you with the advice you need.

The American Bankruptcy Institute defines bankruptcy as a legal proceeding in which a person or business can reduce, restructure or eliminate their debts under the protection of the federal bankruptcy court. Under U.S. Bankruptcy Code, a debtor is provided with three main forms of bankruptcy protection: Chapter 7, Chapter 11, and Chapter 13. Depending on the form of bankruptcy the debtor chooses, they may or may not be required to repay all or part of their debt, and their assets may or may not be repossessed.

When filing for bankruptcy, the first step is to determine which of the three forms of bankruptcy best fits your situation. Chapter 7 bankruptcy, commonly referred to as "straight bankruptcy," is the most common form of bankruptcy and requires the debtor to liquidate their assets to repay creditors. Chapter 11 bankruptcy, commonly referred to as "reorganization," is used by individuals and businesses to create a debt repayment plan which allows them to pay off their debts over time. Chapter 13 bankruptcy, commonly referred to as "wage earner's plan," is used by individuals with regular income who are able to repay their debts over three to five years.

Once you have identified the form of bankruptcy you need to file, your next step is to obtain legal counsel experienced with the bankruptcy laws in Chicago. Fortunately, UpCounsel can help you with this process. Our network of experienced attorneys includes experts in bankruptcy laws, so you can be sure that your legal questions and needs are fully addressed.

With UpCounsel, you can find a Chicago-based lawyer who is committed to providing you with the best legal advice and representation. By providing you with quality counsel that understands the local regulations, we strive to provide you with the best possible outcome for your bankruptcy case. Our attorneys also have access to UpCounsel’s experienced freelance legal department so you can have the peace of mind that your case is in good hands. Additionally, UpCounsel’s online attorney profiles provide detailed client ratings and reviews so you can make an informed decision about which attorney to select.

Filing for bankruptcy can be a stressful and complicated process. It is important that you get the right advice and representation so that you can ensure that your best interests are being met. With UpCounsel, you can be confident that you have found the right counsel in Chicago that understands the local regulations and has a commitment to providing you with the best possible outcome.


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