In these tough economic times many individuals, families and small businesses are facing the reality that they need some assistance in getting their finances back in order. Oftentimes, that means that people who may have been doing quite well just a few years ago are now faced with the possibility of having to file for bankruptcy. In 2009 there were over 1.4 million bankruptcy filings in the United States and nearly 50,000 filings in the Northern District of Illinois. In 2010 it is expected that there will be over 1.6 million bankruptcy filings nationwide. So know that you are not alone when it comes to being in financial distress.

While many people have a vague idea of what it means to file for bankruptcy, few have a total understanding of the process or what it really means. Bankruptcy is a legal procedure that either eliminates or reorganizes debt. When considering filing for bankruptcy, there are two basic options: Chapter 7 or Chapter 13.

Chapter 7 eliminates unsecured debt, such a credit cards, medical bills and personal loans. Chapter 7 also allows you to keep secured debt, things like houses and cars, as long as you agree to keep paying for it. Or, if you can no longer afford to keep your house or car, Chapter 7 allows you to give a house or a car back to the financial insituation who loaned you the money without having to pay for it. There are some requirements one must meet to be eligible for a Chapter 7, but most people meet those requirements.

Chapter 13 is used to reorganize debt. A common example of reorganizing debt occurs when a house is in foreclosure but the owner of the house wants to stay. Chapter 13 allows any mortgage payment arrears to be paid back over a period of years.

Here is how The Fox Valley Legal Group can help resolve your financial problems:

• We will help you determine if filing bankruptcy is right for you. Not everyone needs to file for bankruptcy.
• We will familiarize you with the process - from start to finish - so that you do not feel alone.
• We will help you determine what type of bankruptcy is best for you.
• We will help you organize all the necessary information and documents needed to file your case. This includes helping you to organize your bills and income information. We can even help you get all of the required tax documents.
• If you have filed for Chapter 7, we will help you eliminate as much debt as possible. If you have filed for Chapter 13 we will develop a plan that is both affordable to you and fair to your creditors.
• We will advocate on your behalf for any issues that arise during the course of your bankruptcy