Kane County Bankruptcy Attorney

Chapter 13

In lieu of a Chapter 7 liquidation, an individual may file for bankruptcy under Chapter 13, which involves a reorganization of debt and a repayment plan that may last three to five years. While the overall outcome of a Chapter 13 case is similar to that of a Chapter 7 case (the discharge of all eligible debt), the means in which this is accomplished and the protection the debtor’s assets and property are given will vary.

Are you considering filing for bankruptcy? If you have a steady income and property to protect, Chapter 13 may be the right option for you. Kane County bankruptcy lawyer Joseph Doyle can meet with you and discuss your particular situation during a free initial consultation.

Repayment Schedules and Chapter 13 Bankruptcy in Illinois

When you file a Chapter 13 petition, you will also need to file a proposed repayment schedule. The bankruptcy trustee appointed by the court will review this proposal to determine if it is reasonable, and creditors will also have the opportunity to object if they believe it to be unfair. Once the plan is approved, you will be required to make your first payment approximately 30 days after the date you filed your bankruptcy petition. From then on, you will make monthly payments to the bankruptcy trustee, who will then distribute the funds to creditors accordingly. Upon the successful completion of the repayment schedule, which may take anywhere from three to five years, any remaining unpaid debts will be discharged and you will have no further obligation to those creditors.

A number of factors will go into determining what payment amount should be made to creditors. By calculating your income versus your necessary expenses, calculated based off the living standards set by IRS regulations, the court will make an evaluation as to how much money you will have to pay your debts. Your proposed repayment schedule must provide for the full payment of particular debts which hare considered “priority claims” – such as taxes.

Our firm takes on Chapter 13 cases throughout Kane County and the surrounding areas in Illinois. Contact us today for a free bankruptcy consultation!