Chapter 13 Bankruptcy

Illinois Chapter 13 Bankruptcy Attorneys Serving DuPage, Kane, Kendall and Will Counties

If you are struggling with loads of debt but you are receiving an income, Chapter 13 bankruptcy may be right for you. In Chapter 13 bankruptcy, you commit to a repayment plan over 3 to 5 years to repay your debt. This is unlike Chapter 7 bankruptcy in which your unsecured debts are discharged. With Chapter 13 bankruptcy, you are able to keep most of your property while getting relief from your debt.

Understanding Chapter 13 Bankruptcy

Most consumer bankruptcy filings are Chapter 7 bankruptcies. Chapter 13 bankruptcy, however, can offer some of the same benefits of Chapter 7 bankruptcy with one key advantage—you can stay in your home. At Springer Brown, we are experienced in handling both types of consumer bankruptcy. Our attorneys will examine your finances carefully to determine if either type of bankruptcy is right for you.

Chapter 13 Repayment Plan

The repayment plan is the central part of a Chapter 13 bankruptcy filing. You create this plan with your attorney outlining how you will repay your secured and unsecured debt over a period of 3 to 5 years. Depending on your situation, some of your debt may be discharged and other debts may be reduced. (For unsecured debt, you may only have to pay approximately 10% of what you owe.)

Chapter 13 Bankruptcy Process

Once you file for bankruptcy, a trustee is assigned to your case. In Chapter 13 bankruptcy, you make payments equal to your disposable income (income less your expenses) to your trustee. The trustee then distributes your payment to your creditors. When your petition is filed in court, you come under the protection of the court and all creditor collections must cease. You will have to attend a 341 meeting, also know as “first meeting of creditors,” and complete a financial management course. After your lawyer presents your repayment plan to the judge for confirmation, you can simply make the payments specified in your plan. When the plan is complete you will be current on your debts.

To learn if Chapter 13 bankruptcy can help you out of your financial difficulties, call us to schedule a free initial consultation.