Handling Consumer Bankruptcies in Cook County Communities Such as Midlothian, Orland Park and Palos Hills
Chapter 13 bankruptcy allows individuals to reorganize their debts, paying them over a three- to five-year period. This type of bankruptcy usually allows individuals to keep their homes and other property while making a fresh start. At the Illinois law firm, Urban & Burt, Ltd., we guide clients through the Chapter 13 bankruptcy process, helping them achieve their financial goals and pay their debts.
Benefits of Chapter 13 Bankruptcy
Led by experienced attorney Edmund G. Urban III, our bankruptcy team counsels clients about the advantages of Chapter 13 bankruptcy. These include the ability to:
- Strip away second or third mortgages, allowing the homeowner to bring the first mortgage current over time
- Cure home mortgage arrears
- Protect co-signers
- Prevent sale of assets such as cars, boats and other personal property
- Bring mortgage current while preventing other creditors from seeking payment
- Stop foreclosure proceedings
Benefits such as these make it possible for individuals to keep their cars and homes while becoming current with their debts. Once the agreed-upon repayment plan is completed, the court will discharge any remaining unsecured debts.
How Chapter 13 Works
This type of bankruptcy is often called a wage-earner’s bankruptcy, because it is intended for individuals who have a steady source of income, are able to make regular payments and may not qualify for Chapter 7 under the means test. Part of the filing process is to develop a budget or payment plan that indicates how much income can be applied to the debt each month. This amount is usually paid to the trustee, who distributes the funds to the creditors. The individual will continue to make current mortgage payments and pay ongoing bills. Our lawyers advise clients about which expenses are their responsibilities and which will be paid by the trustee.
Contact the Oak Forest Chapter 13 bankruptcy attorneys at 708-381-5426 to learn more about our Illinois law firm and how to file Chapter 13 bankruptcy. As a full service law firm, we are also able to help clients with legal matters that may have a bankruptcy component.