Joliet Bankruptcy Lawyer on Filing Chapter 13

The chapter that allows for repayment of a portion of the debt would be Chapter 13.  Chapter 13 is bill reorganization through a Chapter 13 trustee.  Chapter 13 is typically used to save a home that’s in foreclosure or to pay a vehicle over time or to reorganize other debts such as non-dischargeable debts: student loans, recent taxes, parking tickets, child support, alimony, debts incurred by some sort of fraud.  

Chapter 13 involves the filing of a Chapter 13 bankruptcy petition, which is filed with the Clerk of the United States Bankruptcy Court. There is a meeting of creditors approximately three to four weeks after the case is filed whereby a Chapter 13 trustee will attempt to make sure that you’re putting all of your disposable income towards a Chapter 13 plan each month.  The Chapter 13 trustee will then either recommend or not recommend your case for confirmation and the case will proceed accordingly.  

Provided you make your current mortgage payment outside of the bankruptcy as well as your Chapter 13 bankruptcy payment, your case will have success.  At the end of three to five years, you will receive a discharge and, technically, your arrears will be reinstated, your vehicle will be paid off and the rest of your debt will be eliminated and they will receive a portion of the debt over those three to five years. 

If you are thinking of filing either a Chapter 7 or a Chapter 13 bankruptcy, I recommend that you strongly meet with a bankruptcy attorney in your local area that practices bankruptcy on a daily basis.  Many attorneys came back into the bankruptcy field thinking that that’s where the gold was.  Make sure that you hire a bankruptcy attorney that’s been practicing bankruptcy for a number of years and who has the requisite experience to handle your case. 

Whatever you do, do not think that you can file bankruptcy yourself.  If you file bankruptcy yourself, you are likely going to have a problem because the law is complex and you need the guidance and assistance of counsel who does this on a daily basis.