Your bankruptcy trustee is paid $60 to hear your case. It is their job to gather your assets and depending on what assets you have they will receive a commission that is based on a sliding scale statutory formula which is set by Bankruptcy Code section 326.
The trustee has the responsibility to handle the communications with your creditors but their role differs from chapter 7 to chapter 13 bankruptcy.
When filing chapter 7 Chicago it is the job of the trustee to take all of the assets and liquidate them into cash. That cash will then be used to pay off creditors as well as to provide the person filing with some money for living expenses.
Should you be filing for chapter 13 Chicago then your trustee would have a different role in the process. The trustee will still review your assets and calculate how much debt you have but then they will work with you and your creditors to develop a payment plan that is reasonable and that you can stick to. You will need to make these payments for a period of 3-5 years. After this time if all payments have been made on time you will be discharged of any remaining debts. Once you complete the chapter 13 bankruptcy process you are able to keep all of your assets.
There are several reasons to file for chapter 13 Chicago:
- You’ve already filed chapter 7 – If you’ve filed chapter 7 bankruptcy you have to wait 8 years before you can file again. You do not have to wait as long to file for chapter 13.
- You make too much money – If your income is too large you will be required to file for chapter 13 rather than chapter 7 bankruptcy.
- You have a lot of assets – If you have a significant number of assets you will want to file chapter 13 bankruptcy so that you can hold onto them.
- It stops foreclosure or repossession – When circumstances cause you to default on your loans you will find yourself threatened with foreclosure or car repossession. Deciding to file for chapter 13 Chicago puts an end to that and keeps your assets safe.
Ultimately you cannot avoid paying the bankruptcy trustee or your Chicago bankruptcy lawyers. However in filing for bankruptcy the debt you will be discharged will be life changing. The fresh start makes the legal fees seem extremely reasonable.