Bankruptcy is the name of a Federal court process that was created to help both consumers and businesses either erase or repay their debts with the protection of bankruptcy court. When you file for Chapter 7 Bankruptcy in Aurora it is also known as filing for liquidation. When you file for Chapter 13 it is also known as reorganization. When you file Chapter 7 you are asking the bankruptcy court to wipe away all of the debts that you owe. When you file Chapter 13 you are telling the bankruptcy court that you want to repay your debts you just need creditors to stop harassing you and you need help getting on a payment plan that works.
Regardless of what type of Bankruptcy in Aurora you file for, a court order that is known as an automatic stay is going to go into effect almost immediately. The purpose of this automatic stay is to prevent almost all creditors from making any efforts towards collecting any money that you owe them. As long as the automatic stay is in effect most of the creditors you owe money to are required by law to leave you alone.
It is important for you to keep in mind that not every single debt you owe is going to be erased just because you file bankruptcy. This is why it is suggested that you consult with a law firm such as Ledfordwu.com to discuss your situation beforehand. A law firm that had experience with filing bankruptcy would be able to help you figure out whether you should be filing Chapter 7 or Chapter 13. They would also be able to look at your debts and tell you which debts are not going to be wiped clean by filing. You could end up finding out that filing would be a waste of time because most of your debts would not be wiped clean anyway. Debts that filing bankruptcy will not help include any unsecured loans or things such as unpaid child support, alimony, or tax debts that you might owe. While it will not erase your past due mortgage payments it will stop the process of a foreclosure for a period of time.
