Declaring bankruptcy can seem devastating at first, but the relief you feel will be palpable. That’s because by taking this action, you can:
- Protect your home from foreclosure and get time to make outstanding mortgage payments
- Prevent the utility services from cutting off your gas, electricity and water supply
- Challenge creditors who are trying to make you pay more than you owe
- Discharge your debts by getting a fresh start on your financial obligations
- Prevent the bank or a business from reclaiming your vehicle or other property if you were unable to pay for in full or compel the creditor to return repossessed items
How you wish to pay off your debts will determine the type of bankruptcy you are filing for:
Chapter 13 Bankruptcy – If you file for this, you will agree you have to pay your creditors in full or if that is not a possibility, pay them with your income for three (3) to five (5) years. To qualify for this bankruptcy, you must show proof of said income, but the payoff is you get to keep most of your property in return.
Chapter 7 Bankruptcy – If you are burdened with debts you cannot take care of, you can file for a chapter 7 bankruptcy and wipe them all out. In exchange, you have to liquidate your assets to pay off your debts and their value has to be determined according to their current valuation. You can keep some secured debts and pay them off gradually. In other words, you will get more time to pay them off than you currently have. To qualify for chapter 7, you must prove you have low income and your assets aren’t valuable enough to take care of your debts.
If you file for bankruptcy in Illinois, you will not lose your vehicle or home – if they are exempt. Even if your assets aren’t exempt, you could retain them – if you can pay creditors their non-exempt value. This is possible if you file for chapter 13. There are also certain ways you can keep a mortgaged property even after you file for bankruptcy- something a season attorney can help you with.
If you are looking for a lawyer who is well-versed in Illinois bankruptcy laws, get in touch with the Casement Group. We can help you file for chapter 7 and chapter 13 bankruptcies and ensure your rights are protected. Schedule a meeting with us in Elgin, IL, by contacting us at 847-888-9300.