DuPage County Chapter 13 Bankruptcy Attorneys
Serving Clients from 5 Convenient Offices in Lombard, Bloomingdale, Naperville, St. Charles and Chicago
For people who are struggling with secured debt but have a stable source of income and do not want to lose their property, Chapter 13 bankruptcy usually offers a better solution than Chapter 7. Chapter 13 allows individuals to reorganize their debt and devise a court-supervised repayment plan based on a three or five-year period. While a sole proprietor or small business owner assigns personal liability through a Chapter 13 bankruptcy filing, in order for a business to reorganize and file for bankruptcy, Chapter 11 would be used, not Chapter 13. At Mevorah & Giglio Law Offices we are aware of the differences in types of bankruptcy and can help you choose which option is best for your situation.
How Chapter 13 Bankruptcy Works
Determination of debt repayment is based on the amount and type of debt, current income, assets and living expenses. A bankruptcy lawyer helps you consolidate your debts into one monthly payment, which you pay to a court-appointed trustee or have deducted from your paycheck. For example, debt consolidation might consist of a monthly payment that covers credit cards, loans for education and transportation, medical bills, parking tickets, IRS payments, and repossessions.
You essentially will pay creditors what you can afford based on the approved repayment plan. To obtain approval for Chapter 13, adequate future income must be projected, either through employment or some other stable source of monthly income.
Filing Procedures in Illinois
Four to six weeks after your bankruptcy petition has been filed with the courts, you and your attorney will attend an informal meeting with the bankruptcy trustee. The trustee will ask questions regarding your debt and income to make sure the proposed plan adequately covers debt repayment. If so, the trustee will recommend your payment plan to the court, and your lawyer will attend a confirmation hearing with the judge on your behalf. When the court approves the plan, you will begin making monthly payments to the trustee, who will pay off your creditors. When the three or five-year plan has been completed and debts are paid, the court will issue a discharge of your debts.
Chapter 13 Advantages
Chapter 13 has many advantages in addition to its overall purpose of providing debt relief through reorganization and repayment. In particular, filing Chapter 13 stops:
- Debt collection (as a result of an automatic stay);
- Creditor harassment (also for cosigners);
- Pending foreclosure actions (if Chapter 13 is filed before a Sheriff's Sale occurs);
- Car repossession;
- IRS confiscation of tax refunds;
- Wage garnishment; and
- Interest payments.
In addition, creditors must accept an affordable payment. Non-dischargeable Chapter 7 debts may be paid off gradually: student loans, parking tickets, and recent tax debt. Secured claims are paid at the fair market value of the asset, not the original value.
A Chapter 13 bankruptcy attorney at Mevorah & Giglio Law Offices can evaluate your financial situation to help you determine whether filing Chapter 13 best addresses your debt problems. Rely on our knowledge and expertise to make the right choices to resolve your financial difficulties. Arrange a free consultation. Call our law firm toll-free number 630-932-9100630-932-9100 or contact a bankruptcy attorney online.
Pursuant to 11 U.S.C. §528, Mevorah & Giglio Law Offices is considered a debt relief agency. We will proudly help you file for bankruptcy relief under the Bankruptcy Code if we believe it is in your best interest.