Chapter 13 Bankruptcy Chicago

Chapter 13

The initial step to filing Chapter 13 Bankruptcy is to contact one of our qualified attorneys to find out if this is the best resolution for you. Collectively, you and the attorney will extend a Chapter 13 plan and fill out all the necessary forms. The Chapter 13 plan provides specifics of all the payments and transactions that will occur within the duration of payments. The Chapter 13 plan must be standard by the court. Payments must commence within thirty to forty-five days after the case has begun. Contrasting Chapter 7, where a trustee is selected to pay the creditor, in Chapter 13 the defaulter is responsible for paying the creditor. Once all expenses have been made you will obtain a discharge and the Chapter 13 plan will be concluded.

The chapter 13 bankruptcy is for those who desire to save a car or a house, and cannot keep current under the terms of the original contract. Others who file for chapter 13 do so because some of their property is non-exempt or their income is high enough to trigger a claim of abuse from the trustee or their creditors.

For those individuals and small business owners who have missed mortgage/vehicle payments, or a lawsuit has been filed against them, a Chapter 13 bankruptcy allows them to cure, or make up, missing payments. The payment is made through a "wage earner plan" and can run 3 to 5 years. Our firm has filed several bankruptcies for both small business and consumers.

Chapter 13 reorganizes your debts: You make partial or full payments according to a repayment plan, and the remaining debts are discharged at the plan completion. If you have a certain amount of stable disposable income after paying for the basics, Chapter 13 may be your only bankruptcy option.

The repayment plan is the main part of a Chapter 13 case and property exemption laws factor into figuring out repayment plan details.

This type of bankruptcy strikes a middle ground between you and your creditors. You get some debt relief, and creditors get some payment.