Helping You File Chapter 13 Bankruptcy in the Chicago AreaChapter 13 bankruptcy is a debt repayment plan. However, it is different from debt consolidation in that your creditors agree to the terms of a repayment plan approved by the bankruptcy court. Filing Chapter 13 bankruptcy also protects you from adverse creditor actions such as wage garnishment, home foreclosure and harassment. At the Law Offices of Chad M.Hayward, P.C., in Chicago, our lawyers offer a free initial consultation to determine if Chapter 13 bankruptcy is the best solution for your debt problems. We serve clients in the Chicago area and throughout northern Illinois.
Am I Eligible to File Chapter 13 Bankruptcy?
In order to qualify for Chapter 13, you will have to show the bankruptcy court that you will have enough income, after subtracting certain allowed expenses and required payments on secured debts, to meet your payment obligations.
Will I Lose My Automobile if I File Chapter 13 Bankruptcy?
In Illinois, you can protect up to $15,000 in equity in your primary residence (or up to $30,000 if you are married). You also have a wild card exemption that allows you to protect up to $4,000 per person (or $8,000 per couple) in other assets such as a car, artwork or furniture. Each individual has a vehicle exemption of $2,400. You can also protect your 401(k) plan, pension plan and other qualified retirement plans .
What Are the Advantages of a Chapter 13 Payment Plan?
Secured debts such as your home mortgage or auto loans must be repaid. However, you only have to pay what you can afford for unsecured debts such as credit card and hospital bills. That may be as low as a few pennies on the dollar. The unpaid portion will be discharged after you successfully complete your payment plan. Your payment plan will be determined based on a variety of factors including your household income, equity in property, past-due mortgage payments and past-due car loan payments.