Bankruptcy may allow individuals and
businesses experiencing financial
hardships to get a fresh start. In
appropriate circumstances, a
bankruptcy will allow the debtor to
eliminate or reorganize debt while
saving important assets such as a
home or car. The filing of a
bankruptcy will also force creditors
and collection agencies to stop
calling, and, in most cases, will
permanently stop lawsuits and wage
garnishments.
Two types of bankruptcy are most
commonly used by consumers. These
are typically referred to as
Chapter
7 and
Chapter
13.
Chapter
7:
A Chapter 7 proceeding, often
referred to as a "straight
bankruptcy," is available to
qualifying individuals. In a Chapter
7 case, most unsecured debts are
completely discharged., while
allowing the debtor to keep exempt
assets; typically including a home
(with limitations on equity),
vehicles (up to a specified value),
retirement accounts (IRAs & 401ks),
disability & social security
benefits, certain work-related
tools, and general household
furnishings (up to a certain
amount).
Chapter
13:
A Chapter 13 bankruptcy is available
to many individuals who have regular
income. Chapter 13 bankruptcy
provides a means by which debts can
be can be reduced and/or paid over
an extended period of time
(typically 3-5 years) under court
supervision and protection. Often,
the amount repaid to unsecured
creditors will be much less than the
amount actually owed. A Chapter 13
proceeding also allows appropriate
debtors who may be behind in their
car payments or mortgages to get
current over time, and, importantly,
save their cars from repossession
and their homes from foreclosure.
Bohlman Law Offices, PC is a debt
relief agency. We help people file
for bankruptcy relief under the
bankruptcy code.
The United States
Bankruptcy Code and the Illinois
Mortgage Foreclosure Act contain
complex and time-sensitive
provisions. If you are considering
bankruptcy, we strongly recommend
that you contact a qualified
bankruptcy attorney right away to
help you determine whether
bankruptcy is an appropriate option
and to preserve your rights under
the law.
Click
here to be
re-directed to our companion site
for additional information on our
bankruptcy legal services.
