Bankruptcy FAQs

Secured debt is debt that is tied to your property with the creditor possessing a “lien” on such property. Conversely, unsecured debt is not tied to any property. The most common examples of secured debt include mortgages and car loans, whereas the most common examples of unsecured debt include credit cards, medical bills, and personal loans.

Yes, you can. Filing for bankruptcy can stop people who have won in court from taking your home, wages, or other things you own. It gives you the chance to sort out your money issues and keep your house.

Yes. Bankruptcy stops all debt collection, including by the IRS and the Illinois Department of Revenue. Sometimes, Chicago bankruptcy lawyers can help eliminate interest, penalties, and old tax debt with IRS debt negotiation services.

After your meeting of creditors occurs (about a month after the case is filed), you can start looking for a new car if a lender is willing to lend to you. There are many car finance companies that lend to people right out of bankruptcy or after the meeting of creditors and will sometimes need court approval. The same goes for purchasing a house and finding a lender willing to give you a mortgage.

Yes, you can file bankruptcy on the loan, obtain debt relief, and still keep exempt property. However, this is only the case if you did not use the loan to buy the items you pledged.

Yes, if you are behind on payments for things like your house, car, or student loans, bankruptcy can allow you to catch up. You can spread these payments over up to 60 monthly installments.

Yes, it can. It might even give you up to five years to repay any mortgage arrears owed to the lender or mortgage company.