Filing for Bankruptcy and Keeping Your Assets in Chicago
Is it possible to file for bankruptcy and still protect your assets? Let's find out!
Financial distress comes in all shapes and sizes. For some debt has been mounting for years. This debt typically grows in the form of credit card debt and a new car. For others it may come on more suddenly. Loss of an income or a health problem can quickly cause debt to build.
Whatever your situation there is a way out of debt without liquidating all your assets through Chapter 7 Bankruptcy. Millions of people have turned to filing bankruptcy as a way to get out of debt, protect their hard-earned property and get back on track. In Chicago, Chapter 13 Bankruptcy will allow you to make payments towards your debts over a period of 3-5 years. After this time you can keep your assets and be discharged of remaining debt.
Here's how Chapter 13 works:
Asset Protection With Chapter 13 Bankruptcy
In Chapter 13 bankruptcy, you are allowed to keep all of your property. However, if you have nonexempt assets, you may be required to pay back more of your unsecured debts through your Chapter 13 plan. In addition, you must continue to make payments on your secured debts or pay them off in your plan if you wish to retain the assets (such as your home or car) securing those debts.
Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy does not involve a liquidation of assets.
Instead, Chapter 13 bankruptcy is intended to help people facing financial difficulty keep their property while gradually catching up on past due balances.
A typical Chapter 13 bankruptcy repayment plan is between 36 and 60 months.
During that time, the bankruptcy petitioner keeps current payments current and makes monthly payments toward past due balances. Debts are prioritized by the bankruptcy court and secured creditors get paid first. Remaining disposable income goes to pay unsecured creditors, in a hierarchy established by the Bankruptcy Code.
A good aspect to filing Chapter 13 bankruptcy is that if all payments have been made as scheduled, unsecured debt remaining at the end of the plan may be discharged.
Want to Get Out of Debt While Protecting Your Assets? Get a Free Chapter 13 Bankruptcy Consultation Today!
Bankruptcy is not about giving up! It's about restructuring your financial profile so that you can move forward and succeed. Chapter 13 can help you do that!
If you're tired of always struggling to pay bills and credit card minimums while never breaking through the financial stress into comfortable living. A small change in your monthly income can make a big difference in what you can afford.
You may not be sure if you're a candidate for Chapter 13 Bankruptcy. That's why at Suburban Legal Group PC, we offer a Free Legal Evaluation. This gives you the opportunity to meet with one of our lawyers and get your questions answered before you make the decision to hire them to represent you.
They can also tell you if they think you'll qualify for chapter 13 Chicago and prepare to administer a 'means test' to determine your income standing. The 'means test' compares your income to the Illinois average and if your income ranks above the average you file for chapter 13 Chicago. If it falls below the median income you will file chapter 7 bankruptcy.
Whatever your financial situation a group of qualified Chicago bankruptcy lawyers can evaluate your situation and determine if chapter 13 Chicago is the best next step. Don't suffer alone – let a qualified attorney help you!