When you can’t find enough work to pay your bills, your telephone rings constantly from bill collectors and the mailbox is full of past due notices, you know that something has to change, but what? Someone may suggest bankruptcy protection, but you are concerned that you’ll lose the few assets you have. When speaking to a Bankruptcy Lawyer in Berwyn IL, it may surprise to find out that you can file bankruptcy and still hold on to some of your assets if you qualify for a Chapter 13 bankruptcy. There are two types of bankruptcy, Chapter 7 and Chapter 13. Both have advantages depending on your specific circumstances.
A standard Chapter 7 bankruptcy is for someone who has no assets to speak of and nothing to lose. At the court hearing, all included unsecured debts are discharged, and the debtor begins anew, but with basically nothing. A Chapter 13 bankruptcy is a bit different. With this type bankruptcy, the Bankruptcy Lawyer in Berwyn IL must prove that the debtor has the sufficient steady income to pay a monthly payment to their trustee. This is to satisfy a portion of the dischargeble debts. Payment plans may amount to only pennies on the dollar for most unsecured debts, such as credit card and medical bills. No matter what the repayment plan turns out to be, it’s important to understand that it will be almost all of your disposable income. If there isn’t a sufficient amount of extra income, the plan may not be approved. The advantage of this plan is that usually your home, vehicles and other items of value remain yours throughout the process. Repayment plans usually last 3 – 5 years. The payment must be paid every month without fail. When all payments are made, the remaining debts are discharged, and the debtor begin again, debt free.
Though no one wants to go through a bankruptcy, it’s not the stigma it was in years past. Instead, it’s a tool that may be necessary to free yourself from overwhelming financial debts that will drown you otherwise. Contact Schottler & Associates if you need to consider bankruptcy protection to get a fresh start. If so, hold your head up high and do what is needed. Afterward, you’ll be able to put it behind you, learn from your mistakes and live a life free, without drowning in debt.
