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Reasons To File Chapter 13 Bankruptcy

Posted in: Bankruptcy

Chicago Bankruptcy Lawyer

Filing for bankruptcy can be scary and is never an easy decision to make. Unforeseen things happen in life causing people to fall behind on bills and payments. If you are overwhelmed with debt or facing financial difficulties, we are here to help. The Bankruptcy Code was enacted to help people in these situations get a fresh start by eliminated their debt and stopping creditor collection efforts. Our bankruptcy lawyers in Chicago will evaluate your case and give you the best advice on how to get out of debt. This blog will discuss Chapter 13 bankruptcy and reasons why people file.  

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is for consumers who have disposable income to repay their creditors. In Chapter 13, you have monthly payments that are sent to the trustee. The trustee disburses those payments to your creditors. When your case is filed, a proposed repayment plan is filed that lays out how much you will be paying each creditor. The entire process takes three to five years.Not every creditor needs to be treated equally. For instance, unsecured creditors (like credit cards, medical bills, parking tickets, and personal loans) can be paid at a fraction of what you owe them. Secured creditors (like vehicles and mortgages) can be treated one of three ways:(1) they can be paid in the case to retain the collateral;(2) they can be surrendered if you do not want to keep the asset; or(3) they can be excluded from the bankruptcy plan and you continue to pay them outside the case.Further, how much your monthly payments are depends on a few factors. First, is your disposable income in the future. This looks at how much money you will be making and your expenses. Second, is the Means Test. This test is to see if your income for the past 6 months is above the Illinois median income level for a household of your size. Lastly, is the amount of total debt you have to repay. To determine how much your monthly payments will be, it is best to call us to speak with an experienced bankruptcy lawyer in Chicago.

Why File Chapter 13 Bankruptcy?

There are numerous reasons why you should file a Chapter 13 bankruptcy. Because Chapter 13 is a repayment of your debt, it will help you keep your assets. The most common example is if you have fallen behind on your car note or mortgage.To prevent repossession of your car, you can file bankruptcy and include your car note in the case. Not only will this prevent repossession, but it may also save you money on your auto loan. In Chapter 13, you can “cram” or reduce the interest rate on the loan and even reduce the principal amount based on the value of the vehicle if it was purchased more that 910 days prior to filing.With respect to mortgages, filing Chapter 13 bankruptcy will prevent foreclosure if you have fallen behind on your payments. In the case, the mortgage arears will be paid in the plan. You then must continue to make the normal monthly mortgage payments going forward.Another reason to file Chapter 13 bankruptcy is to eliminate debt that would not be eliminated in a Chapter 7 bankruptcy case. This would include Chicago parking, redlight, or camera tickets. Chapter 13 can also help with income tax debt. In your bankruptcy plan, you can repay tax debt instead of dealing with the Internal Revenue Service on your own.What are the Steps to Filing Chapter 13 Bankruptcy?The initial process of filing bankruptcy starts with a consultation with one of our bankruptcy attorneys. The lawyer you speak with will review your unique circumstances and help you determine the best path forward. If you decide to move forward, we will schedule a call to get your case started. For the meeting, you will need to provide us with paystubs, tax returns, and complete a credit counseling course. During the meeting we will fill out your bankruptcy petition and answer any questions you may have. Prior to the meeting, it is also best if you make a list of your monthly bills and creditors so we ensure every creditor you owe money to is included in the case.

Call DebtPros Now to Speak with a Chicago Bankruptcy Lawyer

When you call you will talk directly with a bankruptcy attorney who will give you a free consultation.Do not wait to call. It is always best to get ahead of the situation you are facing than to wait until the last minute. Unlike other firms, we treat you with compassion and closely listen as you explain your situation. If you are interested in filing bankruptcy, give us a call at (312) 883-5422.

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What Our Clients Say

I want to start by saying THANK YOU! John was patient, prompt, informative and easy to work with. In our time of need, he helped my parents file for bankruptcy successfully and at a great price. If you are ever in the need of any services concerning your debt and potential bankruptcy litigation, I give my word and experience that John is the BEST in the Chicagoland area.

- Eric McDowell

John was outstanding in the process of my chapter 7. Not only did he keep me abreast of every step and matter that involved my BK but he was reasonable with the price and the time I had to pay him. He sent me places that accepted my Bk when it came to getting a new car as well and his communication was an A+. There was never a time I couldn’t reach him and if he missed my call he would proceed to call back before the day over or early the next day. I recommend him to any and everyone!

- Lamar Johnson

John is a great lawyer to work with. It’s easy to be honest and share things with him. It felt good to communicate with him. When I reach out to him, he is very good at answering the phone or responding when he can. I recommend his work as well. He’s very organized and gets things done. Thank you John.

- JP W

This guy made my experience so smooth I would recommend him to anyone who is thinking about filing for bankruptcy. He is very patient with his clients and Is very informative. Every question I had he answered even if I asked it twice. Highly recommend!!!!!!

- Nikita Nichols

John is very patient, he’s worked with me from start to finish. Always answer my questions and never made me feel like I’m a bother. Never made me feel like I’m a number in his book. He’s very helpful and caring which is why I’d recommend him over any bankruptcy lawyer. Thanks John for all you do.

- Corey Ross

Thank you team DebtPros! The choice to file was not easy, but it was the best decision for my family. John, I appreciate your kindness, thoroughness, and professionalism. I feel like you’ve guided me through this process in a very personable way. Thank you for always being available to chat, and making the experience so efficient and understanding. I can see the silver lining toward a fresh start! Thank you again & Have a wonderful summer. Sincerely, SB.

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I am honored to provide such a financial relief feedback for this amazing blessing whose name is Atty. Wonais. There is so much I could share endlessly about his superb knowledge and service that he offered me as his client. However, I will share what I found to be essential in my financial issues that Atty. Wonais selflessly provided to me as his client; his expertise, his ability of trustworthiness was "everything" oh my goodness he is truly trusting thru the entire process.

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I was referred to them, and this has been the best decision I have ever made. I never been this confident in a person like I am with John. He heard my needs and wants, he made it possible to give me that. Excellent customer service. He put all my options on table to fit my needs. He never sugarcoat he gives it to you like it is meaning he’s not rude or unprofessional. He’s that person that tells you what you need and bot what you want. I have referred all my friends and family to his service.

- Nicole Murray

So one night I went online looking for advice on google and John came up and I called him on the weekend late evening and he happened to answered which was awesome. John helped me out with my situation he gave me amazing advice and options on how to take on my problems the right way. John is super easy to talk to Very informative and he answered all my questions.

- Freddy

This office and staff was amazing. I was referred to John from my best friend and as soon as I reached out he was very prompt on getting back to me and helping. From start to finish the process was amazing stress free and straight forward. He stayed in communication no matter what time of the day. If I had a question he had the answer. His tips and tricks and knowledge helped me a lot and made me more comfortable and excited about starting over.

- Kierra Smith

John took me on as a client with no problem. He was very understanding, passionate, helpful and available every step of the way. Trust me I am a very happy client, I definitely recommend John.

- Jessica Burton

John did a wonderful and seamless job with my case-he handled everything properly and was very timely in all of his communication. He is professional and reliable. I would highly recommend him to anyone who may have to deal with a bankruptcy. Five stars!

- Ashley I.

I had a great experience with Wonais Law, LLC. John is very patient and replies right away to any questions or concerns that you have. I would recommend his services to anyone.

- Erika Sing

If I can leave more stars I will. Wonaia Law is highly recommended. John is great with making sure I understand everything that was going on, I really appreciate how he’s always there to answer any questions I have ... My chapter 7 is just about over and I have 2nd chance with living life debt free.

- Tiffany Austin

John Wonais is responsive, professional, and cares for his clients. He is extremely experienced in civil litigation and has answered all of my questions in a way that I can understand as someone with zero experience in law. He has gone above and beyond and has always made sure to follow up with me when I’ve needed it. I truly feel that he has my best interest at heart.

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I really wanna give a big thanks to John he helped me out a lot. He walked me through everything to make sure I understand, good quality. I don’t think I could of did it without him ?

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He gave an expert and advise and a great service. He went all out to be sure I got a solution to the issue I had.

- Betty Salami

I want to thank John for helping me win my case he was very helpful throughout the process and very professional, thanks again.

- Diana M.

I was very impressed on how quickly I was responded to, and how my lawyer John made everything so easy for me to understand. I have never had to hire a lawyer before, and I'm really glad that I met such a professional, and honest person. I would highly recommended.

- Angela Mata

DebtPros is a law firm that specializes in consumer bankruptcy. John has years of valuable experience and is dedicated to helping clients file for bankruptcy. John is responsive and provides a free consultation to prospective clients. I recommend this firm to anyone who is considering filing for bankruptcy.

- Taylor Kosla

John Wonais provided me with timely and beneficial legal counsel. I would trust his firm to represent me in any creditor-related case. John's professionalism and expertise are second-to-none; highly recommend his services.

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Very helpful, professional and they’re reasonably priced.

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Great Professional Service- I have been working with Wonais Law the past couple weeks and I have been blown away from their attention to detail and professionalism. They get work done quickly and are extremely responsive. I would recommend this firm to everyone needing legal services.

- Andres Jara

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