Des Plaines Bankruptcy Lawyer Can Stop A Sheriff Sale By Filing Chap...

The best thing about Chapter 13 case is that it stops a sheriff’s sale or any other foreclosure – or any other lawsuit dead in its tracks.  It basically gives the debtor an opportunity to repay either all or a portion of his debt over the next three to five years by making a monthly payment to a Chapter 13 trustee who then pays the creditors either all or a portion of the debt.  The amount of the monthly payment plan is determined by income, expenses, assets, liabilities and of course the total outstanding debt is a key factor.  Depending on how much equity someone has in property, depending on how much money someone has available per month out of their budget, these are things that the court and the trustee and the attorneys will factor in in determining whether or not what amount needs to be paid to the Chapter 13 trustee.

One of the greatest benefits of Chapter 13 is unsecured creditors who decide not to be part of the case, in other words they don’t file a proof of claim to be part of the payout, if the debtor completes his or her case that creditor receives nothing, zero, the debt is eliminated.  Often times someone who has a lot of bills, whether they be medical bills, credit cards, personal loans, service bills, will list all of their creditors and surprisingly many of those creditors will not file proofs of claim with the bankruptcy court.  It’s in the best interest of that debtor to complete his or her case so that the debt will be eliminated in full.  Secured creditors routinely file proofs of claims.  So mortgage arrears, auto payments, child support claims, student loans, tax debts, those creditors are going to file proofs of claim.  Many credit cards will file proofs of claim however some do not.  The advantage to the debtor if they can complete their case and the creditor has not filed a proof of claim that debtor is eliminated if it’s an unsecured debt.

To learn so much more about Chapter 13 and stopping a sheriff sale, visit Des Plaines Bankruptcy Lawyer or call directly at (847) 520-8100.