Chicago Chapter 13 Bankruptcy Lawyer
Although most people begin the bankruptcy process hoping to be eligible to have their debts eliminated through Chapter 7, there are several advantages to filing for Chapter 13. In a Chapter 7 bankruptcy, many types of debts and obligations cannot be included for discharge. Under Chapter 13, you are agreeing to repay your loans through a court-supervised plan. You will repay the money you owe, but you get protection from threats of collections actions and you can save thousands of dollars in interest, fees and penalties you might otherwise pay.
If you think that Chapter 13 is less than the debt relief you hoped for, there are many reasons to reconsider. By filing Chapter 13, you can:
- Stop creditor harassment immediately. The day you file, an automatic stay (stop) will be put on all legal actions your creditors may be taking against you. Under the rules of the federal Fair Debt Collections Practices Act, all collection companies and creditors will be forced to deal only with your attorney for collections calls and letters. This includes preventing auto repossession and avoiding foreclosure of your house.
- Strip off a second mortgage that has added a significant amount to your monthly mortgage payment over the years. The amount of the 'junior' mortgage can be included in your repayment plan, while you reaffirm your original mortgage loan and keep your house. You cannot strip off a second mortgage in a Chapter 7.
- Lower your car payment. We can work with your lender to seek a lower interest rate and reduce the amount owed on the debt to as little as 10 percent of the remaining loan. Remember, lenders want the money, NOT the car.
- Restructure your student loans. While every dollar of student loans and other government-backed loans must be repaid, we can defer your loan and restructure your payments into a lump repayment plan that can mean lower monthly payments than what you are now paying.
- Repay your IRS tax debt. If you owe tax arrears to the state or federal government, you cannot eliminate the debt under Chapter 7 until you have met strict eligibility requirements. But all tax debt can be immediately included in a supervised repayment plan under Chapter 13.
- If you have a previous Chapter 7 bankruptcy on your record, you need only wait four years to file for Chapter 13, as opposed to the mandatory eight-year waiting period for Chapter 7.
- Chapter 13 will make less of a negative impact on your credit report. Yes, a bankruptcy is still a serious hit to your credit rating, but prospective creditors will take into account your willingness to repay the money you owe and the improved cash flow. Your credit rating will begin improving with each monthly payment under the court-supervised plan.
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The Chapter 13 process is often more complex than Chapter 7 because there is often more negotiations required with your creditors. If you are considering bankruptcy and live in the Chicago region or communities throughout Illinois, talk to the Law Offices of Chad M. Hayward, P.C., to learn more.
If you are ready for a fresh start, we are ready to help. Illinois bankruptcy attorney Chad Hayward represents clients in the Chicago metro region and communities throughout Illinois.
Reach us to schedule an appointment at any one of our local community offices by calling 312-546-4689 or toll free 888-804-8641.
Chicago
Aurora
Joliet
Schaumburg
Palos Heights
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You can also contact us by e-mail with a brief description of your legal problem. We look forward to helping your family get the fresh start from debt you need and deserve.
