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Are you feeling cornered by escalating debts? Are you stressed about potentially losing your home or car? If so, filing for a Chapter 13 bankruptcy might be a viable option for you. In Chicago, IL, Chapter 13 bankruptcy is not about losing what you own; it’s about holding onto it while you regain control over your finances.
Imagine being able to restructure your debt, making it smaller, more organized, and more manageable. Think of a debt repayment plan that is actually within your reach. That’s exactly what Chapter 13 can do for you. And the best part? You don’t need to let go of your personal possessions, not your car, not your home – nothing.
With DebtPros in your corner, bankruptcy is not a blemish on your financial record – it’s a strategy to get a sound grip on your debt. Our founder, attorney John Peter Wonais, is a leading Chicago bankruptcy lawyer and financial expert with a penchant for helping people. John has built DebtPros on the premise that everyone deserves a fair shot at financial recovery. With us, you’re not just another case file.
We know you are a person with dreams, aspirations, and the determination to overcome financial hurdles. So, we are here to stand with you and aggressively support you every step of the way to help you reclaim your financial freedom.
Filing for bankruptcy in Chicago, or anywhere in Illinois, can be a stressful process. However, understanding how Chapter 13 exemptions under the bankruptcy law work can provide some relief. Exemptions are designed to protect certain properties from your creditors so you don’t lose everything.
In Chapter 13 bankruptcy, the exemptions you claim will impact how much you will pay back to creditors through your repayment plan, which means you need to have a clear idea of what you can exempt. Here are the key facts you need to know about Chapter 13 exemptions:
In Illinois, you have the option to choose between state and federal exemptions, but you can’t mix and match—you must pick one set or the other.
This state offers various exemptions to protect your property, including the following:
Unlike Chapter 7 bankruptcy, when you file bankruptcy in Chapter 13, you don’t necessarily lose your non-exempt property. Instead, the value of these assets determines how much you need to repay your creditors through your repayment plan.
Under Chapter 13, you create a repayment plan to pay back some or all of your debts over three to five years, whether as a monthly payment or another periodic payment plan. The value of your non-exempt property sets a minimum on what you have to pay to unsecured creditors like credit card companies. Essentially, they must receive at least as much as they would have in a Chapter 7 bankruptcy.
The process of filing for Chapter 13 in Illinois can be very complicated, so seeking guidance from a DebtPros bankruptcy attorney is highly recommended. We can inform you about all current exemption amounts and help you choose between state and federal exemptions based on what’s best for your unique situation.
Whether or not you can file for Chapter 13 in Illinois depends on the following primary factors:
First things first, you must get credit counseling from a government-approved agency within 180 days before you file for bankruptcy. So, make sure you complete this step.
Chapter 13 is for individuals, not businesses. But if you run a business as a sole proprietor, you can still file for Chapter 13 in your name and include business-related debts.
Chapter 13 is a reorganization bankruptcy. You need a regular income to make your monthly payments under a Chapter 13 repayment plan. If you cannot afford your necessary monthly living expenses and have enough money left to make payments on your repayment plan, Chapter 13 may not be for you.
For a Chapter 13 bankruptcy case filed between April 1, 2022, and March 31, 2025, your secured debts (like a mortgage or car loan) cannot exceed $1,395,875, and your unsecured debts (like credit card debt) cannot exceed $465,275.
If you received a discharge in a Chapter 7, 11, or 12 bankruptcy case filed within the past four years or a Chapter 13 case filed within the past two years in a bankruptcy court, you cannot file for Chapter 13.
You will need to prove you have filed your state and federal tax returns for the four years prior to your bankruptcy filing.
If you are still not sure or you have any questions, our bankruptcy lawyers will be happy to answer your questions during a free consultation and talk you through the process step-by-step.
Yes, you can. But if you received a discharge in a Chapter 7, 11, or 12 case within the past four years or a Chapter 13 case within the past two years, you are not eligible.
Yes, that’s non-negotiable. You need to complete credit counseling with a government-approved agency within 180 days before filing.
No, businesses cannot file for Chapter 13 bankruptcy. However, sole proprietors can include business debts in their personal Chapter 13 filing.
No. Some debts like student loans, child support, and recent taxes usually cannot be discharged.
Yes, potentially. It is possible to remove junior liens from your property under certain conditions, such as if your home is worth less than what you owe on your first mortgage.
It depends. Both have their benefits and drawbacks. Chapter 13 is good if you have a regular income, want to keep your property, and pay off your debts over time.
Yes, it can halt foreclosure proceedings and allow you to catch up on missed mortgage payments over time.
Yes. Similar to foreclosure, filing for Chapter 13 can halt repossession and allow you to catch up on missed payments.
It typically stays on your report for seven years from the filing date. However, as you make consistent payments over time, your score may start to recover.
Usually, no. This type of bankruptcy requires a regular income for the repayment plan. However, if you have a stable source of non-employment income, you might be eligible. Non-employment income refers to any income that isn’t received from traditional employment or a job. This can include a variety of sources, such as:
These types of income could potentially qualify you for a Chapter 13, but you will need to prove they are regular and stable.
It depends. Plans usually last three to five years, depending on your income and the amount of debt you have.
Yes, but it is not simple. You can pay off your plan early if you can show that the creditors have received at least as much as they would have in a Chapter 7 bankruptcy.
No, typically, student loans cannot be discharged. However, you can pay them off over the course of your repayment plan.
Yes. Chapter 13 bankruptcy can help you manage medical debt by incorporating it into your repayment plan.
Yes. You will usually need to attend a meeting of creditors and a confirmation hearing.
No. You will need to surrender your credit cards when you file.
Yes, filing for Chapter 13 can halt most types of wage garnishments.
Yes, you can file jointly with your spouse, but you are not required to.
With DebtPros, you don’t have to dig deep into your pockets to get expert help during this difficult time – you can file for bankruptcy today with no money down.
Our expert attorneys will file your bankruptcy petitions without requiring a single penny upfront. Your journey towards a debt-free life starts without adding to your financial strain. Plus, you don’t need to spend any money for a legal or financial consultation. At DebtPros, our consultations are absolutely free!
We are here to provide you with expert advice without any initial costs. It is our way of showing you that we truly care about your financial health and want you to get out from under that mountain of debt without delay.
If you are feeling overwhelmed by your crushing debt and considering Chapter 13 bankruptcy, look no further than DebtPros, where our dedicated team of Chapter 13 bankruptcy attorneys is here to guide you through the complex process. We will:
Our goal is to put you back on the path to financial stability as soon as possible. If you are thinking of filing for Chapter 13 in Chicago, IL, why not start with a free, confidential, no-obligation case evaluation from DebtPros?
DebtPros is more than just a law firm. We are a partner dedicated to guiding you through your legal rights and your options for dealing with your seemingly crushing debt – like we have done for so many others before you. Our team is conveniently located in Chicago, ready to help you through this challenging time. Get in touch with us online or call us at (312) 883-5422 and let us help you get back to a debt-free life!