Chapter 13 bankruptcy is often known as "reorganization" or "wage earner" bankruptcy. It allows debtors to create repayment plans to pay back some or all of their debts. Because it involves a repayment plan, the individual filing Chapter 13 must have a steady income. In many cases, this type of bankruptcy works best for those who hold steady jobs, but who have simply fallen behind on mortgage payments or other bills.
North & Sedgwick Law provides clear debt relief counsel and professional representation to individuals in Illinois. Chicago lawyer for Chapter 13 bankruptcy Paul Camarena has a decade of experience in federal court and is available to advise clients about their full range of options.
The Benefits Of Chapter 13
As soon as you file for bankruptcy, the court will issue an automatic stay that puts an immediate stop to any wage garnishment, creditor harassment and debt-related lawsuits. It will also halt home foreclosure proceedings and car repossessions.
Chapter 13 can eliminate a host of unsecured debts. It may also enable you to strip off second mortgages, such as home equity lines of credit (HELOC). Learn more about what debts are dischargeable.
How The Process Works
After helping you file for bankruptcy, your attorney will present a repayment plan to your assigned bankruptcy trustee. This repayment plan is a structured, interest-free way to repay your creditors as much as possible over a three- to five-year period.
After the repayment period is complete, the remainder of your debt will be discharged or erased. Because there are pros and cons to Chapter 13 bankruptcy, it is wise to consult a lawyer who can advise you about your particular situation.
Consult A Debt Relief Lawyer In Cook County And DuPage County
Request a free, no-obligation consultation by calling North & Sedgwick Law at 312-878-8429. You can also contact the firm via email.
El abogado habla español.
†The firm is a debt relief agency and helps people file for bankruptcy relief under the Bankruptcy Code.