Bankruptcy
Chicago Chapter 13 Bankruptcy Attorneys
Foreclosure defense and debt repayment plans in Chapter 13 bankruptcy
Our Chapter 13 Bankruptcy attorneys refer to this kind of bankruptcy filing as "individual reorganization." It can also be called "wage earner bankruptcy" because it requires you to have regular income and propose a repayment plan. Chapter 13 Bankruptcy is an option when you do not qualify for Chapter 7 Bankruptcy or when there is a specific advantage to filing for Chapter 13. Our Chapter 13 Bankruptcy Attorneys will help you to figure out if this is the best option for you.
Your attorneys
Ben L. Schneider
One of the principal bankruptcy attorneys
He focuses on individual Chapter 7 and Chapter 13 filings as well as Small Business Chapter 7 and Small Business Chapter 11 Bankruptcy filings.
- Avvo Clients’ Choice Award 2012
The repayment plan
Debt relief under Chapter 13 is not as direct as in Chapter 7 because you must also propose a "plan of reorganization." This Plan repays a specific portion of your debt by having you pay monthly payments to a trustee. The trustee then pays your creditors for you.
The specific amount of debt you must repay in a Chapter 13 Plan is different for each client. On average you can expect to repay approximately 10 percent of your debt in Chapter 13. This is not a requirement but it is a general rule of thumb.
Our Chicago Chapter 13 Bankruptcy Attorneys work with you to formulate a Chapter 13 Plan or Reorganization. The Plan is based on your income and expenses and requires us to review your budget in detail. The consultation time for a Chapter 13 case is usually longer because it is a more complex kind of case.
How Chapter 13 works
Your lawyer prepares a 3- to 5-year repayment plan.
You make monthly payments to a trustee.
Secured debts (like mortgages) can be brought current.
Unsecured debts (like credit cards) may be greatly reduced or eliminated.
At the end of the plan, remaining eligible debt is discharged.
Stopping foreclosure in Illinois
Illinois is a judicial foreclosure state, meaning lenders must go through the court process to foreclose on a home.
Filing Chapter 13 can:
- Stop the foreclosure immediately
- Allow you to catch up on mortgage arrears
- Let you keep your home
The first step in becoming debt free
Contact our law firm to speak to a Chapter 13 Bankruptcy Attorney in a free consultation.
Schedule a free consultation
Call to set up an appointment or simply fill out the contact form to schedule a virtual consultation or an in person consultation at any of our Chicagoland locations.
847-933-0300