Illinois residents like you who have fallen into debt still have options to get back out of it. We at the Law Office of Paul R. Idlas are here today to give a brief rundown of Chapter 13 and Chapter 7 bankruptcy, two of the most common types.
Chapter 7 bankruptcy involves the liquidation of your assets to pay off unsecured debts. This can be difficult due to the fact that not much is exempt from liquidation. You could lose cars, property, expensive jewelry and more. On the plus side, it allows you to wipe your debt away quickly. You can also start with a clean slate instead of having to worry about repayment plans.
On the other hand, Chapter 13 bankruptcy is usually called a “wage earner’s plan” due to the fact that it relies on you being able to create and stick to a repayment plan. On the plus side, you won’t have to worry about your personal property being liquidated. However, you absolutely must be able to pay off the debt under the repayment plan. There is no second option if you cannot meet the deadlines, and this can get you into even more trouble.
Filing for bankruptcy may feel like a huge load of stress, but it doesn’t have to be. If you are considering filing for either Chapter 13 or Chapter 7 bankruptcy, then you may also want to contact an experienced bankruptcy attorney. They can help you take a look at your personal situation and make a sound decision based on your current needs and abilities.