Understanding Chapter 13 Bankruptcy
Chapter 13 bankruptcy is essentially a repayment plan in which a debtor has three to five years to repay their debt. While the repayment plan needs to be approved by the court, it may also allow you to retain certain assets including your house or car. This makes it a good option for people who already have a steady income despite in debt.
Find out if Chapter 13 is a viable debt relief option for you by contacting my office in Grayslake, Illinois. I help clients throughout the Lake County area understand their options and take action to achieve financial stability.
Lake County Chapter 13 Bankruptcy Attorney
If you currently have a job but are struggling to make payments on your credit cards, mortgage or other debt, Chapter 13 bankruptcy could be a good fit for you. There are a wide variety of substantial benefits to filing for Chapter 13, including:
- Buys you time. It slows down the process of repayment and gives you a chance to get back in the game.
- Stops foreclosures. The automatic stay that applies to Chapter 7 is also present in Chapter 13.
- Stops repossessions. As long as you make payments according to your plan, your property may not be seized.
- Discharges debt. After all payments in the repayment plan are made and disbursed to creditors, any remaining unsecured debt will be discharged – wiped away.
Additionally, your credit report will only reflect a Chapter 13 bankruptcy filing for 7 years, so the long-term affect on your ability buy vehicles, houses and other valuable property may be minimal.
Chapter 13 And Lien Stripping
When you take out a second or third mortgage on your home, you can increase the amount of money you owe on the house over the house’s value. When you file for Chapter 13 bankruptcy, you may have the opportunity to strip this excessive mortgage value away, making unpayable mortgages payable again. This process is called lien stripping and it can be a powerful tool for getting control of your financial situation.
Drowning In Unpayable Debt? Call Me
With 30 years of experience and credibility in the courts for honest and aboveboard representation, you can count on me to help you obtain the repayment terms that are important to you. Call me, Lake County bankruptcy law attorney Paul R. Idlas, at 847-986-8862, or contact me online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.