Illinois Bankruptcy Information
It might be time to consider contacting an experienced and respected Illinois Attorney and find out if bankruptcy is the best option for you.
Filing Bankruptcy in Illinois
Chapter 7 and Chapter 13 bankruptcy are the most common types of personal bankruptcy that are filed in Illinois. In chapter 7 bankruptcy, your non-exempt property is given to a bankruptcy trustee. The trustee then liquidates your property and gives the proceeds to your unsecured creditors. In exchange for this, you are entitled to a discharge of some of your debt. Chapter 13 is the type of bankruptcy that you keep possession and ownership of all of your assets. In exchange, you have to give some portion of your future income to repay your creditors. Usually, this is over a period of three to five years.
You will have to decide whether Chapter 7 bankruptcy or Chapter 13 is best for you if you file bankruptcy in Illinois. An Illinois bankruptcy lawyer can help you make this decision. A bankruptcy is not the end of your financial life. In many cases, it gives you a fresh start and the new beginning you deserve..
Take the first step by filling out the free, confidential legal evaluation and a professional Illinois Bankruptcy Attorney from a well established Law Firm will contact you and discuss your possible case.
Chapter 7 and Chapter 13 Bankruptcy in Illinois
Chapter 7 bankruptcy is the most attractive choice if you are under a heavy burden of debt and are not able to pay it back. However, some debt is non-dischargeable. If you have this kind of debt, you may want to consider filing Chapter 13.
You may ask, \"Why would anyone ever want to file Chapter 13 bankruptcy instead of Chapter 7?\" Actually, there are several situations where Chapter 13 may be better for you than Chapter 7. For example, Chapter 13 bankruptcy is probably a better choice if you are behind on your mortgage or business payments, and you want to keep your property at the end of the bankruptcy process. Chapter 13 allows you to reinstate your original mortgage agreement and make up overdue payments over time.
Also, you may not have a choice. Chapter 13 is your only bankruptcy option if you are not eligible to file Chapter 7. You can file Chapter 7 bankruptcy if your income is below the median income in Illinois. If your income is above the median, you may still qualify to file Chapter 7, if you pass the \"Means Test\".
The \"Means Test\" checks to see if you have enough income, after subtracting certain things, to repay at least a portion of your unsecured debts over a five-year repayment period. You have to file Chapter 13 if you fail the \"Means Test\".
If you can file Chapter 7 bankruptcy in Illinois, you cannot take Federal exemptions. The exemptions that you can take are the state exemptions of Illinois. An Illinois bankruptcy lawyer can tell you what your exemptions are. He or she can also explain to you the limits and amounts on these exemptions. Choosing the right attorney to help you with your bankruptcy filing is important. Lawyers with a general law practice and family attorneys can help you in many ways, but are they right for bankruptcy?
An Illinois attorney who understands the bankruptcy laws in Illinois will probably be your best choice. This is what an Illinois bankruptcy attorney does. He or she works with bankruptcy cases every day. Illinois bankruptcy lawyers know the changes and updates that happen in Illinois bankruptcy law.
More Help on Illinois Bankruptcy Information
- Exemptions - Bankruptcy exemptions are a list of all the assets, personal items and goods that can not be liquidated in Chapter 7 Bankruptcy or sold in Chapter 13 Bankruptcy to repay creditors. - read more
- Means Test - The means test, which is outlined in Section 707(b)(2) of the Bankruptcy Code, makes it more difficult for individuals to have their debts discharged through Chapter 7 Bankruptcy. - read more
Find Other Articles
- Tagged with the keyword: