If you’re seeking a reputable bankruptcy attorney in Chicago, our high-quality, experienced legal team is here to help answer all your bankruptcy questions.
Owing money can be overwhelming, but plenty of legal solutions are available to help lighten the load and reduce stress. If you’re struggling to keep up with paying your debts, filing for bankruptcy could be your next step. Our Chicago bankruptcy firm offers comprehensive assistance with zero-dollar down Chapter 7 and Chapter 13 advice and much more.
Understanding The Process Of Filing For Chapter 7
Chapter 7 bankruptcy is one of the most accessible and affordable forms of debt relief for most individuals. Chapter 7 can help resolve a multitude of unsecured debts, such as:
- Credit card debt
- Medical debt
- Unsecured personal loans
- Wage garnishment
- Lawsuit liability
Immediately upon filing your case, your creditors cannot collect from you or contact you any further.
What Debts Are Not Usually Released By Chapter 7?
- Debts for certain taxes
- Debts for fraud, embezzlement, or larceny
- Student loans
- Debts for certain fines
What Would Make You Ineligible For Chapter 7?
- If you’ve been granted a discharge in a Chapter 7 case in the last eight years
- If you’ve been granted a discharge in a Chapter 13 case in the last six years
- If you’ve destroyed, lied, or concealed details of your assets or filings to the court
Chapter 7: Frequently Asked Questions
Will I Lose All My Properties If I File For Chapter 7 Bankruptcy?
Specific properties are considered exempt and cannot be taken by creditors. A debtor can keep their unmortgaged, exempt properties in a Chapter 7 filing.
When Do I Need To Go To Court In My Chapter 7 Bankruptcy Case?
After filing for Chapter 7, usually within about a month, the court will hold a “meeting of creditors.” The filer must attend this meeting, now held virtually in many states, so setting foot in a courtroom may not be necessary.
How Long Will My Chapter 7 Bankruptcy Case Last?
Chapter 7 is one of the quickest ways to handle your debts. In most cases, the courts often discharge unsecured debts entirely within three to four months of filing for bankruptcy.
What Is Chapter 13 Bankruptcy?
Chapter 13 allows those with regular income but overburdened with debt to lower their monthly bills. Filing for Chapter 13 in Chicago will enable you to consolidate your debt, reduce your total amount owed, and then pay it off slowly and in a more manageable way over the next three to five years, giving you the breathing room you need.
Filing for Chapter 13 bankruptcy can:
- Avoid or reverse car repossession
- Stop foreclosures
- Reorganize tax debt
- Protect valuable assets
What Is The Difference Between Chapter 7 And Chapter 13 Bankruptcy?
When filing for Chapter 7 bankruptcy, the debtor loses most of their nonexempt property and has most of their debts discharged. Under Chapter 13, debtors can keep their nonexempt property but must pay off as much of their debts as possible. After that, they are no longer held responsible for their dischargeable debts and are released from all liability. Chapter 13 also allows more kinds of debts to be discharged than under Chapter 7.
What Are The Limits Of What Debts Can Be Discharged By Chapter 13?
After the completion of all payments under the Chapter 13 plan, filers will be granted a discharge from all debts except:
- Debts having to do with alimony, support, or maintenance
- Debts paid in installments whose final payment is due after the completion of all other payments under the plan
- Debts repaid outside of the Chapter 13 plan
- New debts incurred during the time of filing for Chapter 13 bankruptcy that were not included in payments under the plan
- Student loans
- Debts owed as a result of the debtor being unlawfully intoxicated while operating a motor vehicle and causing the death or injury of another
- The debt owed for criminal fines is included in the debtor's conviction of a crime
Frequently Asked Questions About Chapter 13
Do I Have To Pay Off All My Debts Completely Under A Chapter 13 Plan?
You are not required to pay off all of your debts. Certain debts like taxes and other fully secured debts need to be paid in full under the Chapter 13 plan, but only in an amount you can afford to pay on most of your debts reasonably. The remaining unpaid balances on most debts can be discharged under the completion of the Chapter 13 plan.
Am I Eligible For Chapter 13 Bankruptcy?
Anyone can file for Chapter 13 bankruptcy if they:
- Have some sort of regular income
- Have unsecured debts that amount to no more than $336,900 or secured debts that amount to no more than $1,010,650
- Reside, own property, or do business in the United States
- Are not a stock broker or commodity broker
- Have not filed a bankruptcy case that has been dismissed in the last 180 days
How Long Will It Take To Complete My Chapter 13 Bankruptcy Case?
The Chapter 13 plan will last approximately three years but could end earlier if debts can be paid off before that time. However, if a debtor has a valid reason, they can ask the court to extend the plan for up to five years.
Rebuilding After Bankruptcy
Filing for bankruptcy in Chicago, Illinois, can be your first step toward a brighter financial future. Within six months of filing bankruptcy, your negative debts will drop off your credit score from all the major reporting bureaus. If you’ve struggled with debt, taking advantage of this opportunity to rebuild your credit score is vital. If you remain on top of revolving debts and maintain a secured credit card, you could set yourself on the path to homeownership in the near future!
Learn More About Life After Bankruptcy
How Else Can DebtErasers Bankruptcy Law Firm in Chicago Help You?
Creditor Harassment
Are creditors harassing you unfairly? The Fair Debt Collection Practices Act (FDCPA) protects you against creditor harassment, and our bankruptcy law firm in Chicago can help by holding your creditors to the full extent of the law. Once a third-party debt collector knows a lawyer represents you, their contact with you must stop.
Real Estate Closing
Are you buying or selling property? Our Chicago attorneys team guarantees a seamless real estate negotiation process from start to finish. We are prepared to assist buyers and sellers with complete legal representation throughout the transaction's closing. Make sure your real estate affairs are right with the help of DebtErasers.
Loan Modification Negotiation
Are you living with large loans and feeling like you’ll never get to the end of them? Loan modification could be an option you didn’t know you had. The purpose of a loan modification is two-fold: (1) reduce your monthly payments to a more affordable amount and (2) defer your mortgage arrears to ensure your home is not at risk of foreclosure. To ensure your best chance of securing a loan modification, we recommend enlisting the services of our knowledgeable and experienced attorneys at DebtErasers.
Meet Your Chicago Law Team
Rigoberto Garcia
Managing Partner
Rigoberto has devoted his legal career to helping those in need. As a native Spanish speaker, Rigoberto is attune to the diverse needs of his clients. Rigoberto has over 10 years of experience practicing bankruptcy law and assisted over 15,000 clients with debt relief.
Steve Miljus
Managing Partner
With more than 10 years of experience in bankruptcy, Steve Miljus provides advice and counsel to clients seeking debt relief. Mr. Miljus has assisted clients with foreclosures, debt negotiations, adversaries, tax issues, short sales, real estate transactions with a particular emphasis on liquidations, and reorganizations.
Where Are We Located In Chicago?
DebtErasers is a bankruptcy law firm located in Chicago. You can make an appointment today to visit us from 8:00 a.m. to 6:00 p.m., Monday through Friday.
10258 S Western Ave, Suite 210A
Chicago, IL 60643
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Contact us: (312) 248-3382
No matter how behind your payments are, we are ready to assist you with your financial concerns.