Bankruptcy 101
Chicago bankruptcy attorney - When consumers get into a situation where they can’t keep up with their bills, the Bankruptcy Court may be a source of relief.
Consumer bankruptcy is a process of filing a case in Bankruptcy Court in which people can either erase their obligation to repay most types of debt, or reorganize your debt according to a court-approved repayment plan
Chicago bankruptcy attorney - Chapter 7 bankruptcy allows consumers can either wipe out their legal obligation to pay back many types of debt. Chapter 7 bankruptcy is sometimes referred to a liquidation because the bankruptcy trustee assigned to the case can sell a filer’s assets in order to repay a portion of the debt. However, bankruptcy exemptions protect many personal assets from being
Chicago bankruptcy attorney - liquidated and most people who file Chapter 7 don’t lose any property at all.
Chapter 13 is basically a repayment plan and is sometimes referred to a "wage earner" bankruptcy because, the bankruptcy code requires a regular income to fund a repayment plan.
When people file for Chapter 13 bankruptcy, they have to propose a repayment plan that specifies how you are going to pay back your debts over the next three to five years. The exact amount that consumers are required to pay depend on individual circumstances such as income, the amount of debt, and what assets would be available for liquidation to repay creditors if the filer had filed a Chapter 7 bankruptcy.