Chicago Chapter 7 Bankruptcy Attorneys
Illinois Chapter 13 Bankruptcy Lawyers
Chapter 7 bankruptcy and Chapter 13 bankruptcy are the two most common types of bankruptcy. When people think about bankruptcy, they typically imagine a Chapter 7 bankruptcy. A Chapter 7 bankruptcy is a debt liquidation bankruptcy that allows individuals to completely discharge credit card bills, medical bills and most other forms of consumer debt.
Chapter 13 bankruptcy calls for the creation of a debt repayment plan that lasts for three years to five years. People are required to pay only what they can afford to pay (as determined by a bankruptcy court), and they may potentially discharge a significant portion of their debts after the successful completion of their Chapter 13 debt repayment plan.
Which Type of Bankruptcy Is Right for Me?
An experienced bankruptcy lawyer at Edwin L Feld & Associates can review your financial information at a free consultation and help you determine whether a Chapter 7 bankruptcy or Chapter 13 bankruptcy is best suited to meet your needs. Key issues we will examine include:
- Your eligibility for Chapter 7 and Chapter 13 bankruptcy
- Whether you would lose significant property in a Chapter 7 bankruptcy
Many of the people who contact our office are eligible for Chapter 7 bankruptcy. Even people with substantial incomes often qualify. However, if you have recently filed for Chapter 7 bankruptcy or if your income and debts do not qualify you for Chapter 7 relief, Chapter 13 may be your best bet. Many people who do not qualify for a Chapter 7 bankruptcy do qualify for a Chapter 13 bankruptcy.
A second major difference between Chapter 7 and Chapter 13 bankruptcy is that property may be liquidated in a Chapter 7 bankruptcy. Due to home exemptions, auto exemptions and other property exemptions, many people will be able to protect all or most of their property in a Chapter 7 bankruptcy. However, for individuals with significant assets, a Chapter 13 bankruptcy may be a preferred debt solution.
Finally, a Chapter 13 bankruptcy may be your best option if you are trying to save your home from foreclosure. With a Chapter 13 bankruptcy, you can pay back any past-due mortgage payments gradually over the term of your Chapter 13 debt payment plan. However, if you are unable to save your home or have already lost your home to foreclosure, a Chapter 7 bankruptcy may potentially be necessary to avoid a deficiency judgment if the foreclosure sale does not fully satisfy the remaining debt on your home loan.
These are just a few of the considerations that must be taken into account if you are considering bankruptcy. Our experienced bankruptcy lawyers are pleased to meet with you to discuss your situation and help answer your questions about bankruptcy.
Contact Our Chicago Chapter 7 and 13 Bankruptcy Lawyers
We offer eight office locations to provide local representation to clients throughout the Greater Chicagoland area and surrounding suburbs. To schedule a free consultation with an experienced bankruptcy attorney at our firm, contact us toll free at 888-645-4357. You may also contact us by e-mail.