Chicago IL Chapter 13 Bankruptcy Lawyers
Bankruptcy Attorneys Helping Clients Get Debt Free in Naperville, Wheaton and DuPage County
Crippling debt can take control of an individual's life. Many individuals in debt lose their homes and valuable property as a result of overdue debts. However, under federal law, there are several ways debtors can pay off their debt. Filing for Chapter 13 bankruptcy is one way in which individuals who owe money can repay their debts.
Filing for Chapter 13 bankruptcy is a lengthy, complex process. At the Davi Law Group, our experienced bankruptcy lawyers can assist you with applying for bankruptcy by first assessing your financial situation to determine if Chapter 13 bankruptcy is appropriate for you. We will then help you collect all of the materials and documents you need to apply for this type of bankruptcy.
What is Chapter 13 Bankruptcy?
Also referred to as a wage earner's plan, Chapter 13 of the federal bankruptcy code allows individuals in debt to pay some or all of their debts over a period of time—usually three to five years. Through a repayment plan, debtors will pay their debts in installments to their creditors. Any individual can apply for Chapter 13 bankruptcy if the individual's secured debts are less than $1,184,299 and unsecured debts are less than $394,725. Even if the debtor is running an unincorporated business or is self-employed, he or she is eligible for Chapter 13 bankruptcy relief.
There are several benefits to Chapter 13 bankruptcy. Some of the benefits and exemptions Chapter 13 bankruptcy provides includes:
- Stops debt collection actions against the individual in debt
- Prohibits creditors from contacting the debtor
- Prevents some of the debtor's property from being seized
- Protects co-debtors
- Protects some wages from being garnished
- May prevent home foreclosure
Chapter 13 Bankruptcy Petition Process
In order to file for Chapter 13 bankruptcy, a petition is entered in a bankruptcy court in your county or town of residence. The debtor will be required to provide the court and/or case trustee with several documents including the following:
- Documents detailing assets and liabilities,
- Documents detailing current income and expenses
- Statement of financial affairs
- Unexpired leases and contracts
- Credit counseling certificate
- Copies of debt repayment plans that were formulated during credit counseling
- Tax returns
The court is required to charge the debtor a $235 case filing fee and $75 administrative fee. The fees usually must be paid to the court clerk when filing. However, with the court's approval, the debtor can pay the fees in installments.
The debtor is required to file a repayment plan with the Chapter 13 bankruptcy petition or within 2 weeks after filing the petition. The repayment plan will be entered for court approval and should give payments to the case trustee on a regular basis. Upon receipt of payments, the trustee gives the creditors the payments.
Reputable Bankruptcy Lawyers in Joliet IL
If you are in debt and are considering filing for bankruptcy, contact the bankruptcy lawyers at Davi Law Group. Filing for bankruptcy is a complex process, and if done incorrectly, can lead to your petition being rejected. Contact our attorneys so we can help you begin your journey toward debt relief. Call us at 630-580-6373, or contact us online. We serve clients in Chicago, Aurora, Naperville, and across Illinois.