A Chapter 13 bankruptcy is a good strategy for people who have a temporary set-back but have the ability to pay back their debt and who can do so given time.  Often people suffer from short lapses in income, due to an illness, job injury, divorce, etc.  The loss of income is temporary but by the time the income has been restored, the person cannot seem to catch up because of late fees, higher interest rates and increased fees.  If you find yourself in these circumstances they a Chapter 13 may be a good solution for you.

Our firm will help you prepare a plan which all you to pay back your creditors over time so that you may obtain a solid financial footing.  We will do our best to make this process smooth and stress-free so that you may move forward in life with confidence.

To discuss your bankruptcy options, schedule a free consultation with our experienced bankruptcy attorney by calling 847-468-1200.  For your convenience, we offer appointments in both Elgin and Aurora. 

A Chapter 13 bankruptcy is much better than debt consolidation programs. The bankruptcy court will force creditors to accept your terms and bar them from demanding full payment at any time during the bankruptcy.  You will have peace of mind knowing that all you have to do is focus on making reasonable Chapter 13 monthly plan payments with protection from the court.

How Much of My Debts Do I Have to Pay Back?

In a Chapter 13 payment plan, we will propose a plan for you to pay back a percentage of your unsecured debt over a period of time ranging from three to five years. At the end of that period, any remaining unsecured debts that are not paid during this time will be discharged.

Secured debts such as home mortgages and car loans must be fully paid.  But for unsecured debts such as credit card, payday loans and hospital bills, you may pay as little as 10 cents on the dollar. The exact percentage of your unsecured you will pay will depend on your disposable income and the value of your assets. In some situations, it may be possible strip liens and second mortgages from your personal home through your Chapter 13 bankruptcy.



Benefits of Chapter 13

Filing for Chapter 13 bankruptcy can give you time to get your finances in order by paying your debt back in manageable monthly payments over a three- to five-year period. Some of the biggest benefits of Chapter 13 are:

• Your creditors will no longer harass you.
• You may use the Chapter 13 plan to keep your secured debts like your home and cars.
• You will stop or avoid wage garnishments
• You may eliminate second mortgages and home equity loans in certain circumstances.
• You may reduce the amount of the unsecured debt you owe.
• You may reduce interest rates on credit cards, unsecured debt and mortgages
• You may improve your credit score through debt reduction and timely payments of your Chapter 13 plan
• You may stop repossession of your car(s).