Bankruptcy Basics
 | Bankruptcy Basics
Chicago bankruptcy attorney - When consumers are having trouble making ends meet, consumer bankruptcy may be a source of relief. Chicago bankruptcy attorney - Filing for bankruptcy is a legal proceeding in which consumers can either eliminate their legal obligation to repay some or all of their debts, or repay your debt according to a court-approved repayment plan Chicago bankruptcy attorney - Chapter 7 bankruptcy allows consumers can either erase their legal obligation to repay most types of debt. Chapter 7 bankruptcy is sometimes referred to a liquidation because the bankruptcy trustee assigned to the case can sell a filer’s assets in order to repay a portion of the debt. However, bankruptcy exemptions protect many personal assets from being liquidated and most people who file Chapter 7 don’t lose any property at all. Chapter 13 is basically a repayment plan and is also known as a "wage earner" bankruptcy because, in order to file for Chapter 13, you must have a reliable source of income that you can use to repay some portion of your debt. When families file for Chapter 13 bankruptcy, they have to present the court with a repayment plan that specifies how you are going to pay back your debts over the next three to five years. The exact monthly payment that people are required to pay depend on individual circumstances such as income, the amount of debt, and what assets would be available for liquidation to repay creditors if the filer had filed a Chapter 7 bankruptcy. |
