Chicago Bankruptcy Lawyers

Bankruptcy is a Powerful Financial Tool

We understand that the thought of declaring bankruptcy can be overwhelming and scary. However, bankruptcy is unquestionably one of the most powerful financial tools available to consumers.

When a bankruptcy case is filed, you are immediately protected against your creditors by virtue of the “automatic stay,” which stays or stops almost all creditor collection efforts. This means that creditors can no longer garnish your wages, repossess your vehicle, foreclose on your house, or even call you demanding money. Instead, creditors must go through the bankruptcy court and your lawyer to seek repayment on any debt you may have.

Once a case is successfully completed, your eligible debt will be eliminated by a “discharge” order signed by the bankruptcy judge. The most common types of debt eligible for discharge are general unsecured debt, such as credit cards, medical bills, payday loans, and repossessions. Additionally, while in bankruptcy, you can start to rebuild your credit score over time. In deciding on which type of bankruptcy to file, it is imperative you speak with an attorney who not only knows the bankruptcy laws but also the tendencies of the local trustees and judges. With almost a decade of experience practicing bankruptcy in Chicago, you can trust our bankruptcy lawyers to correctly advise you on all aspects of your case and likely outcomes. 

Chicago Chapter 7 Bankruptcy

Filing Chapter 7 bankruptcy is often the fastest and most efficient way to “discharge” your unsecured debt. Frequently, this can be accomplished without having to pay anything to your creditors or lose any of your property. However, not everyone qualifies for Chapter 7 bankruptcy.

The Process of Filing Chapter 7 Bankruptcy

To qualify for Chapter 7 bankruptcy, you must pass the “means test.” This test requires you to show the court whether you have the means to repay your debt or not. In determining whether you qualify, our Chicago bankruptcy lawyers will review your finances and assets and thoroughly explain everything to you. If you do qualify, our attorneys will prepare and file your bankruptcy petition.

Once filed, a Chapter 7 bankruptcy case typically lasts only four to six months and is overseen by a trustee. The trustee will review your case to determine if there are any non-exempt assets to liquidate or sell. If the trustee finds no assets to liquidate, a “no asset” report will be filed with the court. From there, the last step to receive your discharge is completing a debtor education course and waiting for the judge to enter your discharge order.

How Filing Chapter 7 Bankruptcy Can Help You

There are many benefits to filing for Chapter 7 bankruptcy but the most important includes eliminating your qualified unsecured debt. Typically, this debt includes:

• Credit Cards
• Medical Bills
• Personal or Payday Loans
• Utility Bills
• Judgments and Lawsuits, and
• Repossessions

If you think Chapter 7 bankruptcy may be for you, call now to consult an experienced bankruptcy lawyer at DebtPros who will evaluate your financial circumstances and offer you practical advice regarding your legal options.

Chicago Chapter 13 Bankruptcy

Chapter 13 bankruptcy, often referred to as “reorganization bankruptcy,” offers you the chance to get back on your feet and repay your debt in manageable monthly payments for a period of three to five years. Chapter 13 is often best suited for people who are attempting to save a home from foreclosure, vehicle from repossession, or have regular income exceeding the eligibility requirements for a Chapter 7 bankruptcy.

The Process of Filing Chapter 13 Bankruptcy

The process of filing a Chapter 13 bankruptcy is more complex than a Chapter 7 bankruptcy. Therefore, when choosing a bankruptcy lawyer to represent you it is important to find one with the necessary knowledge and expertise in filing Chapter 13 bankruptcy cases.

In a Chapter 13 bankruptcy you must show the court the ability to afford meeting your monthly household obligations and regular payments in the case. Once filed, a repayment plan is proposed on how you are going to repay your creditors. Different creditors receive different treatment. For instance, you can propose to pay your general unsecured creditors a fraction of what is owed while paying your secured creditors in full. Each monthly payment you make in the case is sent to a trustee who disburses those payments to your creditors. Normally, only creditors who file a claim in your case are entitled to repayment.

How Filing Chapter 13 Bankruptcy Can Help You

Chapter 13 bankruptcy can help you save valuable assets by repaying your creditors back on what you were behind on. It is also very beneficial in restoring your credit and providing you with the necessary breathing room to manage your household expenses.

Chapter 13 bankruptcy may be your best option if: 

• Your facing foreclosure
• Your vehicle was repossessed or about to be
• You owe tax debt
• You have equity in property that may be liquidated in a Chapter 7
• Your income level is too high for a Chapter 7

If you are considering filing Chapter 13 bankruptcy, do not wait to contact us. With experience filing thousands of Chapter 13 bankruptcy cases in Chicago, our bankruptcy lawyers will be able to provide you with the best legal advice in the area. 

What Our Chicago Bankruptcy Lawyers Can Do for You

After reading about the different types of bankruptcies and the overall process, it might seem overwhelming at first. You are already stressed out about money. Luckily, that is what we are here for. Our attorneys will walk you step by step throughout the whole process and provide legal representation throughout your case.

We will:

• Help you determine which bankruptcy best suits your needs
• Ensure your bankruptcy case is filed correctly and in a timely manner
• Protect your money and assets
• Defend you against creditor actions in the case, and
• Be there for you 24/7 to answer any questions you may have

If you are considering bankruptcy, give us a call today at (312) 883-5422 for a free consultation.