Chapter 13 bankruptcy is quite different than filing Chapter 7 bankruptcy. While Chapter 7 covers liquidation, Chapter 13 addresses repayment. Usually, the debtor is obligated to make repayments on part of his or her debt over a period of three to five years.
Why You Should Contact a Lawyer
A Chapter 13 bankruptcy lawyer in Effingham, IL can show you how to use Chapter 13 to stop a home foreclosure or catch up on mortgage or car payments. You can also use this form of bankruptcy to stop the interest from accruing on unpaid taxes or keep certain exempted property. In addition, back taxes can be paid when Chapter 13 is used as a form of payback.
As a result, a Chapter 13 bankruptcy lawyer offers this type of financial relief to debtors who wish to keep a secured asset such as an auto or home and wish to reorganize their debts. A Chapter 13 bankruptcy allows clients to reduce their debt load so they can reinstate contracts and continue to make mortgage or car payments.
Getting Rid of a Heavy Debt
If you simply want to eradicate a heavy debt without paying it back, you will need to express your concerns to a lawyer who handles Chapter 7 bankruptcy cases. Otherwise, a Chapter 13 bankruptcy lawyer can help you get back on track financially.
When You Can File Chapter 13 in Illinois
You can file Chapter 13 bankruptcy in Illinois if you possess unsecured debts for under $394,725 and secured debts up to $1,184,200. A filing should not be made unless you wish to achieve the following goals:
* Discharge your obligations so you can experience a fresh financial start
* Stop garnishment of wages or collection agency harassment
* Stop a foreclosure or repossession
* Keep certain exempt properties
* Prevent utility shutoffs or restore utility services
* Pay a debt in relation to a license suspension that cannot be discharged unless a bankruptcy filing is made
A bankruptcy filing stays on a credit report for up to 10 years. Therefore, make sure that you are making the right decision financially. Contact the law office of Smith Law, Ltd. In Charleston, IL. Make a call today to 217-345-6222 or 800-232-1325. You can pay visit to their Facebook page for latest news and updates