Consumer credit has a colorful past. The ability to say “charge it” was not always in the U.S. consumer’s vocabulary. Consumer credit or being able to purchase goods and services without cash on hand had its humble beginnings in the late 19th century.
If you have been surprised by unexpected medical bills or lost your job, then you might be in a financial predicament. When you get behind on your bills, creditors will aggressively call for you to pay what you owe. Sometimes, banks and other lenders will threaten to foreclose on your home or garnish your wages. But if saving your home is important to you, it is important to know how filing for bankruptcy may save your house.
In the course of bankruptcy, consumers are given an avenue to wipe the slate clean. It is a legal status for people who aren’t able to pay for debts that they can’t pay due to medical reasons, unemployment, or a variety of other concerns. There are two options primarily used by consumers to start over, a chapter 7 bankruptcy (liquidation) or chapter 13 bankruptcy (restructure).
All bankruptcy proceedings are handled by the appropriate federal court. In the Chicago area, bankruptcies are processed by the United States Bankruptcy Court for the Northern District of Illinois. Bankruptcy law is federal, and regardless of which court handles a bankruptcy, the laws and procedures are essentially the same.