Bankruptcy In Chicago & Why People File

Americans are used to handling debt.  Most people carry debt of some sort in their daily lives.  Even ones that are handling or managing the debt still feel the stress that comes with that debt.  Despite this fact, most people carry on and seem to get by.  That is, of course, until a creditor begins to get aggressive.  Now I’m not talking about harassing phone calls from creditors at your home and at your work.  I’m talking about filing suit, obtaining judgments and continuing with post-judgment efforts to collect on the debt.  This could lead to bank seizures, wage garnishments and further court appearances requiring the production of certain documents.  Those documents can include bank statements, tax returns, deeds to property and any other statement evidencing assets.  That is ultimately how a creditor with a judgment can collect.

Not surprisingly, it is at that point when the thought of bankruptcy really forges to the surface.  After all, a wage garnishment can result in a 15% drop in income from employment.  This could mean the difference from making ends meet and falling a little short.  And a bank citation or bank seizure can cause myriad problems.  For example, outstanding checks that were written for other creditors will bounce; you will not be able to use the account or draw any surplus out.  In Illinois, the bank will freeze two times the judgment amount.  Thus, if the creditor has a judgment for $5,000.00 and issues a bank citation, the bank will hold up to $10,000.00 of whatever is in the account pending a court order.  It is not likely that you would have two times the judgment amount.  If you did, you probably would have made arrangements with the creditor before the citation was served.

If you have been hit with a garnishment or bank seizure, it is not too late to act.  As far as wage garnishments, anything deducted prior to filing rightfully belongs to the creditor.  All future deductions will cease upon the date of filing.  For bank citations, you need to file prior to a court order directing the bank to turn over the funds to the creditor.  Thus, you have a small window of time to file and prevent the bank for turning over your funds.  You will still have the inconvenience of having your account frozen.  However, swift action will prevent you from losing out on your money.

These are the two situations that push one to file for bankruptcy more than anything else in my opinion.  Nobody wants to be garnished and nobody wants their bank account to be frozen with proceeds being turned over to a creditor.  If you live in Chicago, I have five offices that you could visit for an initial consultation.  You will be amazed at how helpful a bankruptcy attorney can be in a time of financial need.




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