Chicago Chapter 13 Bankruptcy Attorney
Helping Clients Repay Debt And Stop Foreclosure
If you are considering bankruptcy, you may be concerned about losing your assets. Rather than liquidating your assets, Chapter 13 allows you to pay back your debts over a three-to-five-year period payment plan which is reviewed and approved by the bankruptcy court. This is the type of bankruptcy that is highly beneficial for those who want to keep a home or other property but have fallen behind and are now in trouble, possibly facing foreclosure.
How Does Chapter 13 Work?
While the repayment of the debts is taking place, creditors cannot attempt to recover more than what you owe! They are restricted from getting what has been approved by the bankruptcy court in your repayment plan. Your determined disposable income is divided up between the creditors, with each getting a monthly payment. This allows you to pay back your debt without being harassed.
Bankruptcies filed under Chapter 13 require that:
- You must have a portion of your income that is disposable
- Creditors cannot recover more than what you owe
- A repayment plan is created by the trustee and paid throughout the case
Do I Qualify for Chapter 13 Bankruptcy?
To qualify for Chapter 13, you must:
- Be current with your tax filings.
- Have enough disposable income for a repayment plan.
Your debts must be within the limits.
As of April 2019, the debt limitations are
- $1,257,850 of secured debt, and
- $419,275 of unsecured debt.
- As of April 2019, the debt limitations are
- You cannot file because you own a business that is in debt.
Chapter 13 and Foreclosure
If you received a foreclosure notice from the bank, and you qualify for Chapter 13 bankruptcy, filing automatically stops foreclosure proceedings and allows you to work out a repayment plan for overdue payments. You also have the opportunity to renegotiate the terms of your mortgage during this period of time. Timing is important during this whole ordeal -- do not file too soon and do not wait too long. Reach out to a skilled Chicago bankruptcy lawyer to help you get the most out of filing!
Many people find themselves in trouble from the subprime mortgage boom. After the crash in 2008, many homeowners found themselves unable to consistently manage making payments that had doubled, and were unable to renegotiate the terms with the lender, as the property values plummeted. If you are currently in this situation, our Chapter 13 attorney can assist you!
What Are the Benefits of Filing?
Aside from stopping foreclosure, filing for Chapter 13 bankruptcy has many other benefits as well.
The benefits of Chapter 13 include:
- The amount you owe your creditors could be greatly reduced
- Late fees could be canceled
- Interest rates may be reduced
- Once the repayment plan is completed, the remaining debt is discharged
- Stop car repossession
- Stop creditor harassment
- Stop creditors from suing you
- Stop freezes on your bank account
- Remove tax liens on your home
In some cases, your debts will not be able to be discharged; however, you may be able to walk away paying far less than you initially owed.
Our Chapter 13 Lawyer in Chicago Can Help
It is extremely important that you have an experienced Chapter 13 bankruptcy attorney by your side if you decide to file. There are many financial advantages that could be negotiated for you. You have the right to negotiate these on your own, however, it is not a process that you should try on your own.
The savings you get and the amount you pay your creditors each month can be worked out with the help of your attorney. You need to ensure that you can keep up those payments, or the entire process may fail if you don't. It is extremely valuable to have legal assistance to file Chapter 13, as the final outcome could be far more advantageous for you in the end.
Contact our Chicago Chapter 13 bankruptcy lawyer online or call (312) 957-8077 for a free consultation about filing for this type of bankruptcy. Se habla Español.