Get the facts from Chicago IL Illinois Bankruptcy Lawyers

A commonly misperceived stereotype is that people who file for personal bankruptcy protection seem to take the easy way out. This is, of course, comes from people outside looking in. It is always easier to judge the relationship of this kind. What many people do not realize is that while the bankruptcy has its advantages, but also has its drawbacks. People who file for bankruptcy, more than likely have carefully weighed their options and decided to go with the lesser of two evils. 

Under federal law under the Bankruptcy Act Prevention of Abuse and Consumer Protection Act, which was implemented in October 2005, the potential bankruptcy Filers undergo stringent checks to qualify for personal bankruptcy protection. 

Most Chicago IL Bankruptcy lawyers clearly advise their clients who are interested in filing for personal bankruptcy protection, they can potentially come across while application for either a Chapter 7 or Chapter 13 bankruptcy protection. 

The first thing is called the means test. Specifically, the purpose of the means test is to determine whether a person really need for federal bankruptcy protection. Trang provision requires the evaluation of the potential files last six months of income. That income is then compared to the median income for that state. Provided that the person's income is lower than the median, Chapter 7 is still a possibility, but whose income exceeds the median income for the state as other parts of the test must be used. 

Next, the difference between your income and expenses over a period of five years is calculated. If this amount is $ 10,000 or higher, you must file for a Chapter 13, which requires you to establish payment arrangements to satisfy your debt. 

If you make more than the median income for your country, but has less than $ 10,000 in surplus for debt repayment for the entire period of 5 years, then your extra money compared to a percentage of your debt to determine eligibility for Chapter 7 bankruptcy filing. 

In an ideal world, there would be no need for a lot of bankruptcy lawyers, Chicago IL. But the reality of the times dictate the need for an abundance of competent IL Chicago bankruptcy lawyers.