Personal Bankruptcy | Chapter 13
Illinois Chapter 13 Bankruptcy Attorneys Serving DuPage, Kane, Kendall and Will Counties
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 which 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 minus 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 known 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.
Please read out FAQ page for answers to common questions.