One reason a great majority of people file Chapter 13 bankruptcy is to save their home or car. Chapter 13 bankruptcy allows someone who has fallen significantly behind on one of these to become current over a period of 3 to 5 years as opposed to the short time the creditor would normally allow. Furthermore, Chapter 13 bankruptcy stops foreclosure and/or repossession, in most cases, giving a person the opportunity to get back on their feet.
Occasionally, individuals do not qualify for Chapter 7 bankruptcy and turn to Chapter 13 bankruptcy. In Chapter 13 bankruptcy, the debtor repays creditors either a portion or the entire amount of the debt owed.
While Chapter 7 can accommodate people with homes and vehicles, a small percentage of individuals have substantial equity in their homes or cars or make too much money, according to the IRS standards, to qualify for a Chapter 7. Filing bankruptcy under Chapter 13 can still relieve these individuals of a substantial financial burden because they are usually able to pay back only a percentage of the debt owed.
Together with a lawyer, a Chapter 13 debtor proposes a repayment plan to the court. Payments into this plan are made to an appointed trustee in bankruptcy who then distributes the money to creditors. Among several other factors, the IRS guidelines help determine how long a plan must last, but the attorney has a good deal of discretion in making sure the Chapter 13 meets your needs and budget. The plan payments include all monies owed to secured and unsecured creditors, trustee fees, attorney’s fees and court costs.
There is only one payment to make each month in order to cover everything, including mortgage arrears and car payments. The payment plan is designed to fit the Chapter 13 debtor’s budget so that it is comfortable to pay. After the debtor successfully completes the plan, with only a few exceptions, the debtor is relieved of debt entirely.
Schaumburg Chapter 13 Bankruptcy Lawyer
Debt Repayment Plan Attorney
Chapter 13 bankruptcy is known as a reorganization bankruptcy, because it allows you to reorganize your debts in a way that is manageable to you. In this type of bankruptcy, you will create a repayment plan that you will pay on for three to five years. Through that plan, you will pay off a portion of your debt. Any debt that remains afterwards will be discharged. From filing to creating your repayment plan, Chapter 13 is a complex process. You can benefit from the assistance of an experienced lawyer from the Law Offices of Thomas Lageotakes, P.C., in Schaumburg, Illinois. Let us help you overcome your debt.
Do You Qualify For Chapter 13 Bankruptcy?
The bankruptcy law changed in 2005. There are still people who think that, because of the changes, they are not able to file bankruptcy. In reality, people file bankruptcy every day because they have found themselves in the same position you are in: after you cover the costs of living, you have a little bit to cover your other debts, but nowhere near enough. That is exactly what Chapter 13 is designed for.
We will review your case carefully. If Chapter 13 does not make sense in your situation, it is possible that you can get debt relief through Chapter 7.
The Benefits Of Chapter 13 Bankruptcy
When you file bankruptcy, all creditor harassment must stop. Home foreclosure must stop. Repossession of cars and other property must stop. Wage garnishment must stop. This is one of the major benefits of bankruptcy, but Chapter 13 has even more benefits. This type of bankruptcy opens up unique opportunities, such as the stripping of second mortgages. We will help you get all the benefits available to you in a Chapter 13
Lageotakes Law Firm
Thomas Lageotakes, Attorney & CPA
1699 E Woodfield Rd Suite 400
Schaumburg, IL 60173
111 E Jefferson Ave
Naperville, IL 60540
Chicago office by appointment only: Coming soon
WESTFIELD, IN, 46074
Phone: 224 324-4400
Phone: 630 753-8035 630 753-8035
From our office in Schaumburg and Naperville, Illinois, we handle matters in areas of DuPage County, Cook county, Will County, and Kane County including Aurora, Barrington, Bartlett, Carol Stream, Hoffman Estates, Naperville, Oak Brook, Roselle, Schaumburg and Streamwood.
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