Illinois Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is also known as personal reorganization, reorganization bankruptcy, or the wage earners plan. This form of bankruptcy is similar to Chapter 11 Bankruptcy, but specifically for individuals. Chapter 13 of the Bankruptcy Code enables individuals with regular income to repay their debts over a period of time. Individuals who want to keep their non-exempt income that would be lost under a Chapter 7 bankruptcy may prefer
Chapter 13 for this reason.
Illinois Chapter 13 Bankruptcy Process
Chapter 13 Bankruptcy entails consolidating all of your debt into one monthly payment.
Chapter 13 Bankruptcy can help individuals restructure their tax debts, avoid foreclosures, and deal with out-of-control debt. Chapter 13 Bankruptcy is applicable when an individual’s income exceeds their monthly expenses. It allows a person with a regular monthly income to design a plan to repay all or part of their debt.
Illinois Chapter 13 Bankruptcy Plans
Chapter 13 payment plans range in duration from no less than 36 months to no greater than 60 months based on your income and other circumstances. During the span of your plan and when the automatic stay is in place, creditors are forbidden to start or continue collection efforts.
Illinois Chapter 13 Advantages
Filing for Chapter 13 Bankruptcy has several advantages compared to filing for Chapter 7 Bankruptcy. Under a Chapter 13 Bankruptcy, an individual facing foreclosure is given the opportunity to save their home. Chapter 13 Bankruptcy also allows the court to modify an individual’s repayment plan depending on the number of creditors who file claims and on other circumstances that can result in overall lower payments.
Contact a Chicago Chapter 13 Attorney for a Free Debt Analysis
Have you lost sleep over what you see as an unmanageable financial situation? Are you counting the days till a foreclosure sale? Do you still have a regular source of income? If so, you may be a good candidate for a Chapter 13 Bankruptcy.
Contact an experienced and aggressive Chicago, Illinois Chapter 13 Bankruptcy attorney at Bentz Law Firm to schedule a free consultation online or by calling Attorney Jessica C. Bentz at (312)641-2233.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney regarding your individual situation.