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What is Chapter 13 Bankruptcy?

Wheaton bankruptcy lawyers, file for bankruptcy, Chapter 13 bankruptcy, bankruptcy advantages, Chapter 13 bankruptcy eligibilityHaving to file for bankruptcy can be devastating. And while it is a serious issue, there are several facts that many individuals do not know about bankruptcy as a whole. There are two notable types of bankruptcy: Chapter 7 and Chapter 13. To fully understand bankruptcy, it is very important to understand the differences.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also referred to as a “wage earner’s plan,” gives individuals with regular income an opportunity to create a plan to pay off their debts.

How Long Does the Process for Chapter 13 Bankruptcy Last?

Debtors make a repayment plan for the individuals filing for this type of bankruptcy to pay off their debts within three to five years. The debtor’s monthly income exceeds the state median, and then the plan will generally last five years. However, if the debtor’s income is less than the state median, the plan will last three years, unless a longer period "for cause” is approved by the court.

Who is Eligible for Chapter 13 Bankruptcy?

If an individual’s unsecured debts do not exceed $394,725, and his or her secured debts do not exceed $1,184,200, then he or she is automatically eligible to file for Chapter 13 bankruptcy. For the individual to be ineligible for Chapter 13 bankruptcy, he or she will have filed for a previous bankruptcy petition that was dismissed for the failure to appear in court in the preceding 180 days. He or she may also have failed to comply with the court’s orders to lose eligibility for Chapter 13 bankruptcy.

What Are the Advantages of Chapter 13 Bankruptcy?

Chapter 13 bankruptcy allows the filing individual the opportunity to avoid foreclosure. However, to save his or her home, the individual must still pay the mortgage payments in full and on time. The individual can also reschedule secured debts and extend them during the period of time when he or she files for Chapter 13 bankruptcy. Moreover, he or she may also be protected from third parties with the liability of consumer debts.

Contact a DuPage County Bankruptcy Attorney

Having to file for bankruptcy can make for a very stressful financial experience, but it does not have to mean the end of the world. If you find yourself considering filing for bankruptcy, talk to a knowledgeable Wheaton bankruptcy lawyer. At Davi Law Group, LLC, we understand your questions and concerns about bankruptcy, and we are always glad to help. Call us today at 630-580-6373 for a free initial consultation.

Source:

http://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics

Abraham Lincoln A lawyer’s time and advice are his stock and trade. -Abraham Lincoln
Warrenville Office
Address28371 Davis Parkway
Suite 103
Warrenville, IL 60555
Phone(630) 657-5052
Fax(888) 350-9195
Wheaton Office
Address1776 S. Naperville Road
Building A, Suite 105
Wheaton, IL 60189
Phone(630) 580-6373
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Address321 N. Clark Street
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Chicago, IL 60654
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Joliet, IL 60432
Phone(815) 582-4901
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Davi Law Group, LLC handles family law, estate planning and real estate matters for clients in Chicago and throughout the western suburbs including DuPage County, Will County, Kane County, Kendall County and Cook County and the cities of Aurora, Bloomingdale, Bolingbrook, Carol Stream, Darien, Downers Grove, Elmhurst, Geneva, Glen Ellyn, Hinsdale, Joliet, Kendall County, Lisle, Lombard, Naperville, Oak Park, Oak Brook, Oswego, Park Ridge, Roselle, St. Charles, Villa Park, Warrenville, Wheaton, Winfield, Woodridge and Yorkville, Illinois.
Warrenville Office
Address28371 Davis Parkway, Suite 103, Warrenville, IL 60555
Phone(630) 657-5052
Fax(888) 350-9195
Wheaton Office
Address1776 S. Naperville Road, Building A, Suite 105, Wheaton, IL 60189
Phone(630) 580-6373
Fax(888) 350-9195
Chicago Office
Address321 N. Clark Street, Suite 900, Chicago, IL 60654
Phone(312) 985-5676
Fax(888) 350-9195
Joliet Office
Address58 N. Chicago Street, 7th Floor,
Joliet, IL 60432
Phone(815) 582-4901
Fax(888) 350-9195
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