Chapter 13 Attorney
Through a Chapter 13 plan, you can repay your debts over multiple years if you have a regular income. Chapter 13 bankruptcy offers major benefits over the Chapter 7 option – most notably, the ability to stop foreclosure proceedings. At the Chicago Bankruptcy Clinic in Oak Brook, IL, our attorney’s team finds fresh starts for debtors with the Chapter 13 solution.
Se Habla Español
Approximately 1/3 of Chicagoans speak a language other than English in the home. Our clinic is bilingual, allowing us to provide life-changing bankruptcy attorney services to both English and Spanish-speaking clients.
What Is Chapter 13?
Chapter 13 is a bankruptcy relief option that is often referred to as a reorganization bankruptcy. It allows debtors who have a consistent income to create payment plans promising to repay all or some of their debts over a three- to five-year time period.
Once our bankruptcy attorney’s office has successfully filed for Chapter 13 on your behalf, bankruptcy courts stop creditors from seeking payment from you. Completing your Chapter 13 plan will lead to the elimination of all debts – even those that are not fully paid off.
Chapter 13 payments must be made with disposable income. Therefore, it is crucial to prove you have enough income to account for your living expenses and pay your debtors. Eligibility is determined through a “means test” that evaluates your average monthly income. Our bankruptcy attorneys will help you pass this “means test” so you can reap the many rewards Chapter 13 offers.
Chapter 13 Creates a Barrier
Between You and Creditors
If our Oak Brook, IL, clinic gets your Chapter 13 bankruptcy plan approved, the court will appoint a trustee to handle your repayment plan. You will make monthly payments to the trustee, who is in turn responsible for paying your creditors according to a clearly defined schedule. This ensures you have no contact with creditors.
Bankruptcy CLINIC
Chapter 13 Offers Many Major Benefits
Chapter 13 is a financial lifeline for eligible debtors with assets they must protect. It also provides several advantages over the more commonly used Chapter 7 option. With Chapter 13 bankruptcy you can:
Prevent Foreclosure
A temporary stoppage of foreclosure proceedings is perhaps the number one reason an individual may choose Chapter 13 over other options. For example, an individual with a regular income who opted for Chapter 7 could risk losing their home.
Keep Property
Make Up Payments
Chapter 13 allows you to make up delinquent payments so you can keep significant property. With your repayment plan, you can make up missed mortgage or car payments to allow you to maintain property you were at risk of losing.
Pay Back Taxes
Stop Interest Accrual
The filing of a Chapter 13 bankruptcy freezes the accrual of interest on your tax debt. This applies to local, Illinois state, and federal tax responsibilities. This interest freeze prevents your tax debt obligations from skyrocketing.
Protect Co-Debtors
A co-debtor is someone who took out a loan with you. They are typically responsible for paying off the loan debt. In a Chapter 13 bankruptcy, creditors are restricted from seeking payment extents from co-debtors. This protects the individual(s) who you have financial ties with.
Illinois Relies on Our Attorney
For These Reasons and More
Years in Practice
Our attorneys have spent years successfully handling bankruptcy cases. Our in-depth knowledge allows us to handle complex bankruptcy matters that others cannot.
Client Care
We always keep your best interests at heart as we help eliminate secured and unsecured debts. This includes offering free consultations and providing flexible payment plans.
Request Help
From Proven Bankruptcy Attorneys
If you are experiencing financial trouble through no fault of your own — a job loss, a medical emergency, unexpected expenses — turn to Chicago Bankruptcy Clinic.
When you partner with us, you can rest assured we will never judge you. Instead, we will offer you trustworthy advice and objective insights so that you can make the best decisions about your future. Our comprehensive legal services include:
- Drawing up and filing the bankruptcy petition
- Guiding you through the means test
- Assessing your available disposable income
- Representing you in bankruptcy court
We serve Metropolitan Chicago including Aurora, Elgin, Joliet, Naperville, and Oak Brook. Call or write to request your consultation.
Lead attorney Alex Ranjha
5-Star Reviews
For Alex Ranjha and Our Team
There Are Some Potential Drawbacks
To Using Chapter 13 Bankruptcy
Credit Report
The Chapter 13 bankruptcy filing remains on your credit report for seven years. This can limit your access to credit for the time being; however, you can take steps to repair your credit rating while you are still in bankruptcy.
Financial Limitations
While you are in the midst of completing your Chapter 13 bankruptcy payment plan you cannot assume new debt, buy anything on credit, or transfer property without prior approval from the court.
The potential drawbacks described above rarely outweigh the benefits of pursuing Chapter 13 bankruptcy for eligible debtors. Our attorney and his bankruptcy team will help make sure this option is correct for you before helping you file.
Should You Use Chapter 7 Instead?
Our Oak Brook, IL, attorney and his team are highly versed in all relevant bankruptcy laws. We will take the time to deeply understand your personal situation before making our bankruptcy recommendation.
In some cases, Chapter 7 can be a better solution than Chapter 13 bankruptcy. For example, you may want to pursue Chapter 7 if you do not have high-value assets or luxury goods to protect. While you can lose property during Chapter 7, much can be protected with bankruptcy exemptions, and Chapter 7 can get you out of debt faster than Chapter 13 bankruptcy can.
Chicago Bankruptcy Clinic
At Chicago Bankruptcy Clinic, our bankruptcy attorneys and paralegals work closely with clients to assess their financial situation and explore debt relief options, including filing for Chapter 7 and Chapter 13 bankruptcy. Our team is proud to be affiliated with the following organizations:
- Illinois State Bar Association
- Chicago Bar Association
We offer free consultations and flexible payment plans. To learn more about foreclosure and bankruptcy, contact our office online or call (630) 349-4127 today.
Contact Us Today
