Chicago Chapter 13
Chapter 13 bankruptcy in Chicago
The Law Offices of Jay Fortier, PC works with clients to determine whether a chapter 13 bankruptcy in Chicago is the right approach to handle their debt.
What is chapter 13?
Chapter 13 is also called a wage earner’s plan because it allows a person to consolidate and pay off debt over a three- or five-year period. Chapter 13 is only for individuals, not businesses, who have a steady source of income from a job, social security benefits, or rental income. A Chicago chapter 13 plan allows you to pay what you can afford, reducing interest rates, and monthly bill payments for loans, credit cards, medical bills, parking tickets, etc. Every month you pay an agreed upon lump sum to the bankruptcy trustee who pays your creditors.
The automatic stay advantage
As with chapter 7, when you file a Chicago chapter 13 bankruptcy, an automatic stay immediately goes into effect, which stops creditor collection activities:
- Harassing phone calls
- Collection letters
- Lawsuit threats
- Lawsuits
- Wage garnishment
- Repossession
- Foreclosure
- IRS confiscation of funds
Debtors who benefit most from filing chapter 13 in Chicago
A Chicago chapter 13 works best when people have:
- A regular, reliable income source
- A lot of equity in a home, real estate, business, work equipment, or cars
- Temporary financial hardship such as an acute medical condition, illness, or financial loss
Legal help with the Chicago chapter 13 bankruptcy process every step of the way
Our firm will prepare and file your bankruptcy petition and a proposed bankruptcy plan. In four to six weeks after filing the petition, we will attend an informal meeting with you and the bankruptcy trustee to review your debts, income, and the plan. If you have sufficient income and an effective plan to deal with debt, the trustee will recommend the Chicago chapter 13 plan to the court for approval. Once approved, you begin making monthly payments to the trustee and continue until you finish the three- or five-year plan. When the plan is completed, the courts will discharge any remaining debt.
For more information about Chapter 13 bankruptcy in Chicago and our fees, see the our Consumer (Personal) Bankruptcy page.
Arrange a free consultation to discuss Chicago chapter 13 bankruptcy. Call our Chicago bankruptcy and loan modification attorney Jay Fortier at 1-773-295-1324 or contact us online today!