Illinois Bankruptcy Attorney

Debt counseling is a term used commonly these days, as so many people are struggling with financial difficulty. Consumer debt is at record levels (nearly $2 trillion) and many so-called debt counseling services have emerged to take advantage of this opportunity. Unfortunately, these debt counseling services often leave consumers in worse positions than they were before. If you are in a challenging debt situation, consult with a knowledgeable attorney about your options.

Avoid Debt Counseling and Credit Repair Scams

Debt counseling, debt consolidation and credit repair companies often promise quick and easy solutions to your financial problems. The trouble is, many of these “solutions” are actually scams targeting people when they are most vulnerable. These companies often charge high fees and deliver little to no results. In most cases, Chapter 7 or Chapter 13 bankruptcy would offer superior debt relief for individuals facing trying financial circumstances.

Credit Counseling Before Bankruptcy

Bankruptcy law saw a major overhaul in 2005. In addition to stricter eligibility requirements, petitioners must now complete a credit counseling program prior to filing. This requirement applies to both Chapter 7 and Chapter 13 bankruptcies. Credit counseling must be through an agency that has been approved by the United States Trustee’s Office. The goal of the counseling program is to help you determine if bankruptcy is necessary in your situation. While participation is required, you are not required to abide by the program’s recommendations. Another counseling session is also required before your bankruptcy case is closed. This session teaches debt management skills to help prevent financial difficulties in the future.

Contact us at Northwest Suburban Bankruptcy to discuss your situation. We work with individuals throughout the Northwest suburbs of Chicago to find real and lasting solutions to their debt troubles.