Chapter 13 Bankruptcy Lawyer Chicago
Do You Need a Chapter 13 Bankruptcy Attorney in Illinois?
Learn Everything You Need to Know About Filing Chapter 13 Bankruptcy
Filing a Chapter 13 Bankruptcy in Chicago Illinois allows a debtor to make payments on outstanding debt over a period of up to 60 months. The Chapter 13 Bankruptcy process requires completion of various schedules and petitions and can be a complex procedure. Therefore, it is important to choose a bankruptcy attorney in Chicago who has the experience, compassion, and work ethic to see you through the process.
With 2 convenient locations in the Chicago Illinois area (Schaumburg, Chicago), Suburban Legal Group PC can help you with your bankruptcy filing and make sure you have representation through this difficult time.
We offer a Free Bankruptcy Consultation (in our office or over the phone) to help you determine if you have a viable case or not. There is NO obligation with your free consultation and we do this without you having to commit to any fees or spend any money. Request a Free Chapter 13 Bankruptcy Consultation today!
Chapter 13 Bankruptcy vs. Chapter 7 Bankruptcy
Many people considering Chapter 13 Bankruptcy in Chicago ask our bankruptcy attorneys what the difference between these two types of filing is. Very simply, Chapter 13 Bankruptcy includes a repayment plan. The repayment plan commits the disposable income of the debtor to regular scheduled payments over a three to five year period.
Why File for Chapter 13 Bankruptcy?
- Chapter 13 Stops Foreclosures and Repossessions. Many people have gone through loss of job, divorce, or illness which has made them fall behind on their obligations with their mortgage company or car payments. Chapter 13 Bankruptcy can help you keep your property while managing a more affordable payment plan. An automatic stay stops the foreclosure proceeding as soon as the you file the chapter 13 petition.
- Too Many Assets: If you have too much equity in your house, or you have assets that exceed the protected or exempt amounts, you may be able to keep your assets and pay your debts back through a consolidation bankruptcy.
- Income is Too High: Some people also file for Chapter 13 Bankruptcy in Chicago because they have too much income to qualify for a Chapter 7 Bankruptcy filing.
- Previous Chapter 7 Filing: If you have filed a Chapter 7 Bankruptcy in the preceding eight years, you are not eligible to file again. Chapter 13 Bankruptcy is your only option.
A highly experienced Illinois bankruptcy attorney is your best resource for determining whether you should file for Chapter 13 Bankruptcy in Chicago.
How Does Chapter 13 Bankruptcy Work?
- The bankruptcy attorney files Chapter 13 Bankruptcy plan when the bankruptcy petition is filed. The plan will propose to pay a certain amount of money per month to the Chapter 13 trustee, based on the debtor’s income and certain allowable expenses.
- Meeting of Creditors: Between 21 and 50 days after you file the chapter 13 petition, the chapter 13 trustee will hold a meeting of creditors. During this meeting, the trustee places the debtor under oath, and both the trustee and creditors will review the plan and may ask questions.
- Chapter 13 Bankruptcy plan is confirmed and trustee begins collecting payments from the debtor and distributing funds to creditors according to the plan.
- When all payments are made and disbursed to creditors according to the plan, a discharge will be issued eliminating any remaining unsecured debt that is discharge-able.
Why Chapter 13 Bankruptcy Over Another Debt Consolidation Plan?
Many debt consolidation companies attempt to negotiate with your creditors or offer settlements which can ultimately be rejected. However, Chapter 13 Bankruptcy is a consolidation plan regulated by Federal Law and the Bankruptcy Court. Once a plan is confirmed, the creditors will be required to accept payments according to the terms of the plan or not get paid at all. In most cases, Chapter 13 will stop all interest on unsecured debt allowing you to pay just pennies on the dollar.
Chapter 13 also provides you protection from those creditors that are in the plan. In most cases, they cannot seek payments from you outside of the bankruptcy or may be subject to fines and penalties if they do.
What Else Do I Need to Know About Chapter 13 Bankruptcy?
One very important thing to remember about Chapter 13 Bankruptcy in Illinois is that you must be working or have a consistent source of income for your repayment plan to be approved by the court. Not only must you be able to pay for your monthly living expenses, but you must also be able to make a payment to the court to consolidate your debts. You must continue to make your payments to the trustee over the 3-5 year period.
If payments are not made to the trustee in a timely manner, the case may be dismissed. If mortgage payments are not kept up to date, the mortgage lender may ask to be removed from the bankruptcy and attempt to collect the debt outside the bankruptcy case.
Likewise, if taxes are not maintained on property, or if insurance is not maintained on any homes or vehicles, those creditors may ask to be removed from the bankruptcy and may be allowed to collect the debt while the bankruptcy case is still open.
More Answers to Your Chapter 13 Questions:
- What is Chapter 13 Bankruptcy’s Effect on Credit Scores in Chicago?
- How Does Chapter 13 Bankruptcy Work?
- Is it Possible to File for Bankruptcy and Keep Your Assets?
Reasonable Fees for Chapter 13 Bankruptcy Filing in Illinois
The Chapter 13 Bankruptcy attorneys at Suburban Legal Group PC are sensitive to the difficult time you may be facing. If you need a bankruptcy attorney in Illinois, we can help! While filing and going through bankruptcy can be complicated and frustrating, the attorneys at Suburban Legal Group PC can help you successfully complete navigate the process and get a fresh, debt-free start.
Request a Free No Obligation Chapter 13 Consultation Today. Let us help you determine what your options are and create a road map to help you get out of debt. Our goal at Suburban Legal Group PC is to change your financial future, and we provide a reasonable fee and payment plan options that helps you accomplish this.