Chapter 13 Bankruptcy: A Debt Repayment Plan
Illinois Bankruptcy Attorneys - Over 30 Years of Bankruptcy Law Experience
Unlike Chapter 7 bankruptcy, which eliminates most forms of consumer debt, a Chapter 13 bankruptcy is a debt repayment plan. Typically, the duration of the debt repayment plan is three to five years.
Filing a Chapter 13 allows a debtor to repay a portion of his or her debt without the trauma of creditor harassment. If you have a steady income Illini Legal Services can create a financial plan that will allow you to regain you financial freedom. The plan will be approved by both the United States Trustee's Office and the Bankruptcy Court. Every month a payment is made to a Trustee, who will distribute the money to creditors. Part of your debt is paid to the creditors and the rest is discharged.
Although the facts of each case vary, a Chapter 13 bankruptcy may allow you to:
- Stop a home foreclosure
- Stop a wage garnishment
- Stop creditor harassment
- Eliminate a portion of your debt
- Gain additional time to pay debts in a more gradual fashion
People who file for Chapter 13 bankruptcy relief are often employed and may have significant assets they want to protect from the possibility of liquidation. Some of the people who file for Chapter 13 bankruptcy were originally seeking relief through Chapter 7 bankruptcy, but learned that they did not meet the economic means test for Chapter 7 eligibility.
To learn whether Chapter 13 bankruptcy, Chapter 7 bankruptcy or another debt relief measure may be the answer for you, contact Illini Legal Services. We provide experienced bankruptcy and debt relief services to people and small businesses throughout Northern Illinois.
We Tailor Our Approach to Meet Your Needs
If you are struggling with debt, you want a long-term solution — not just a short-term fix. At Illini Legal Services, that is exactly what we do. We focus on long-term solutions by creating financial plans of attack to help you win your financial battles. Our attorneys work closely with each client to devise a strategic plan of attack. We tailor our approach to meet the individualized needs of each client we serve. Our attorneys C. David Ward and Brian J. Russell understand the importance of planning.
Because Chapter 13 bankruptcy is a three-to-five-year debt repayment plan, it is essentially a form of financial planning. The goal is to pay your debts back in a more gradual manner, gain time to get back on your feet, and exit the bankruptcy process on a strong financial footing.
Contact Us
If you need to speak with a lawyer about bankruptcy, contact our Illinois law office today at 630-618-2906. Feel free to contact us by e-mail as well. We have offices in Aurora, Oswego and West Chicago.
Illini Legal Services is engaged in the private practice of law and is not a public legal aid agency. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
