Filing for bankruptcy can be a difficult process, and it’s important to have legal assistance from a Chicago Chapter 13 bankruptcy lawyer at Therman Law Offices to make sure your petition gets filed correctly the first time. Learn about what you can expect from the filing process and how you can benefit from having an experienced bankruptcy lawyer.
Are you eligible?
A lot of people have been burned by bankruptcy. If you have unpaid debts and few assets, you may be eligible for Chapter 7 bankruptcy. However, if you have a steady income and some property to protect, Chapter 13 might be more beneficial to your situation. There are strict eligibility requirements for each type that differ from person to person; not meeting those requirements can result in denial or dismissal. In either case, it’s important to consult with an experienced lawyer who is familiar with local laws and court proceedings related to bankruptcies before making any decisions regarding your finances.
When should you file for bankruptcy?
It’s easy to get into debt, but hard to get out. Filing for bankruptcy can be scary, but it’s also an important way to breathe fresh air into your finances if you need it. Knowing when to file is an important decision — one that shouldn’t be made without considering all your options and consulting a qualified attorney. The most important things to look at are: 1) how much money you owe and 2) how much cash you have coming in (or going out). Ideally, having $0 in monthly income and 0 dollars in monthly expenses means that filing for bankruptcy is really your only option.
What does it mean to file for bankruptcy in Illinois?
Filing for bankruptcy in Illinois is an important and potentially life-changing step that requires you to work with professionals who are adept at helping clients navigate their way through both Chapter 7 and Chapter 13 proceedings. The lawyers at Therman Law Offices know what it takes to get people back on their feet after filing for bankruptcy. We can explain why filing for a Chapter 7 or Chapter 13 proceeding is necessary, what each one entails, how we may be able to help our clients avoid foreclosure on their homes, and how we can help them reduce their debt over time. We’ll work hard to ensure you know your rights and responsibilities under each filing type so that you feel comfortable moving forward with your case.
Should I hire an attorney?
Whether you’re going through a difficult time in your life or just want to increase your chances of getting debt discharged, it’s important to work with an attorney. Hiring an attorney who is knowledgeable about bankruptcy law will help ensure that all assets are protected and that any liens are included in your plan. It’s important to understand that, unlike other types of law, when you file for bankruptcy it’s not just yourself on the line; it’s everyone who has ever done business with you and anyone else who might be affected by your personal financial situation.
Contact an attorney today.
If you’re in over your head with debt, one option for reducing it is filing for bankruptcy. There are two kinds of personal bankruptcy: Chapter 7 and Chapter 13. To begin either process, you need to get in touch with an attorney who specializes in bankruptcy law. Don’t make any decisions about your situation without first consulting someone who can offer clear answers and sound advice about your options. Reach out to a Chicago Chapter 13 Bankruptcy Lawyer at Therman Law Offices today for more information!
Benefits of Chapter 13 Bankruptcy
If you’re drowning in debt, you may be thinking about filing for bankruptcy with the help of a Chicago Chapter 13 bankruptcy lawyer. However, you may be unsure of whether to file Chapter 7 or Chapter 13 bankruptcy. While Chapter 7 bankruptcy may wipe out most of your debts, there are still many advantages to Chapter 13 bankruptcy. Here are a few benefits of this bankruptcy.
- Less upfront money. When you’re struggling with debt and your finances, you may struggle to come up with money to file bankruptcy. That’s one good reason to consider Chapter 13 bankruptcy. Many people are unaware that filing for Chapter 13 bankruptcy has less upfront costs than filing for Chapter 7 bankruptcy.
- Prevent foreclosure. Many people who are deep in debt are in danger of losing their homes. If you’re currently in this situation, you may feel very stressed out. However, if you declare Chapter 13 bankruptcy, you may be able to save your house from foreclosure. Under a Chapter 13 plan, you may be able to split up your past-due payments into smaller and more manageable amounts.
- Keep a vehicle. Filing for Chapter 13 bankruptcy may also help you keep your car. You may be able to reduce your loan to match the current value of your car.
- Learn to budget better. Bankruptcy is a good time to reassess your finances and budget. Learning how to budget better can help you avoid getting into the same situation in the future. Chapter 13 bankruptcy actually requires you to develop a realistic budget with your Chicago Chapter 13 bankruptcy lawyer.
- Chapter 13 bankruptcy stays on your credit report for a shorter time. After you file for bankruptcy, your credit rating will take a hit. This can make it more difficult to get approved for credit cards and loans. However, if you file for Chapter 13 bankruptcy, your credit may suffer a little less. Chapter 13 only stays on your credit report for seven years, while Chapter 7 stays on it for 10 years.
- Rebuild credit. Creditors tend to look more favorably on those who file Chapter 13 than those who file for Chapter 7. This is because you’re still paying something back, even if it’s a smaller amount. They may be more willing to take a chance on you in the future.
- Switch to Chapter 7 in the future. Even if you declare Chapter 13 bankruptcy right now, you still may be able to convert to Chapter 7 later if necessary. For example, if you lose your job and have no income to pay your debts, you may qualify for Chapter 7.
- Keep tax refund. Many people look forward to receiving a tax refund at the beginning of the year. However, if you declare bankruptcy, you might be worried about losing your refund. However, as a Chicago Chapter 13 bankruptcy lawyer can attest, if you file for Chapter 13 bankruptcy, you may be able to keep your refund.
BENEFITS OF CHAPTER 13 BANKRUPTCY
The Process of Filing for Chapter 13 Bankruptcy
Struggling with debt is a stressful experience that can make you feel like you’re drowning as a Chicago Chapter 13 Bankruptcy lawyer knows. If you can’t pay your debts and bills on time, you may be considering filing for bankruptcy. If you have a regular income and would like to keep your assets, Chapter 13 bankruptcy may be the solution for you — if you are considering it, contact Therman Law Offices, LTD for help.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a type of bankruptcy that allows you to keep your assets while paying off your debts over a period of three to five years. It’s also known as a reorganization plan because it involves creating a plan to repay your debts. Under Chapter 13, you submit a payment plan to the court that outlines how you will pay off your debts over time. This plan, which is usually between three to five years, must be approved by the court to become effective.
Eligibility and Filing
To qualify for Chapter 13, you must have a regular income and unsecured debts of less than $419,275, and secured debts of less than $1,257,850. You must also complete a petition and other required documents. You’ll need to file a repayment plan that outlines how you’ll repay your debts over the next few years. After filing your petition, a trustee will be appointed to your case to oversee the repayment plan.
The Repayment Plan
The payment plan created in Chapter 13 bankruptcy will outline how you’ll pay off your debts over a period of three to five years. During this time, you’ll make payments to a trustee who will distribute the funds among your creditors. You’ll also have to pay any priority debts such as taxes and child support. Secured debts, such as a car loan or mortgage, can be paid off through the plan or through direct payments. As long as you make your payments on time, you’ll be protected from creditors trying to recover their money.
Benefits and Consequences
There are several benefits to filing for Chapter 13 bankruptcy. It allows you to keep your assets, and it gives you time to catch up on missed payments. It can also reduce the amount you owe on unsecured debts, like credit card debt. Filing for Chapter 13 bankruptcy will also stop foreclosure proceedings and collections efforts. However, there are potential consequences to consider, such as a lower credit score and the need to follow strict budget guidelines with the help of a Chicago Chapter 13 Bankruptcy lawyer.
Completion and Discharge
Once you’ve made all your payments according to the repayment plan, you’ll receive a discharge of your remaining debts, except for certain types of debts like taxes and student loans. With a discharge, your unsecured creditors can no longer legally collect any unpaid debt from you, and you’ll have a fresh start financially. After the discharge, you’ll likely have to attend a financial management course before your bankruptcy case is closed.
Filing for Chapter 13 bankruptcy may seem like a daunting task, but it’s a viable solution for people who want to keep their assets while paying off their debts. It’s always best to consult with a bankruptcy attorney to make sure you’re making the best decision for your situation. With the right guidance and a commitment to your repayment plan, you can move forward with a fresh start and a plan to manage your finances going forward. Contact a Chicago Chapter 13 Bankruptcy lawyer from Therman Law Offices, LTD today.