Bankruptcy – Bankruptcy Law Firm Joliet
What is chapter 7?
Chapter 7 Bankruptcy is known as the fresh start or liquidation bankruptcy. If you have credit card debt, medical bills, a personal deficiency judgment, a court judgment, and or a wage garnishment, then Chapter 7 may be something to consider, as advice of bankruptcy attorneys Joliet. A Chapter 7, if you qualify, can eliminate most unsecured debts. Generally, a Chapter 7 Bankruptcy can take anywhere from 3 to 6 months to complete.
Benefits of a Chapter 7:
- Stops Wage Garnishment
- Unfreeze bank accounts
- Eliminate most unsecured debt, such as credit card debt and medical bills
- Temporarily stops a foreclosure law suit
- Stops a small claims law suit
- Stops the harassing collection phone calls
- Stops with the collection mailings
- Immediate protection from your creditors (known as the Automatic Stay)
- Gives you a fresh start
What is a Chapter 13?
Chapter 13 is known as the reorganization or payment plan bankruptcy. If you do not qualify for a Chapter 7 or have assets, then a Chapter 13 may be for you. Chapter 13 is where you pay all of your creditors through a court ordered payment plan. Our bankruptcy lawyers Joliet specialize in all matters of Chapter 13.
In a Chapter 13, you don’t lose any of your property or assets, but you must use your income to make the monthly plan payments. The typical term plan lasts anywhere from 36 to 60 months and the percentage you must pay depends on your assets and income level.
Can I protect some of my assets in bankruptcy?
The answer is yes; there are certain exemptions that you can use to protect your assets. The following are some of the common exemptions used in a Bankruptcy:
- Retirement Plans – such as a 401 (k), 403 (b), IRA, profit sharing, and annuities. Retirement Plans are exempt if they are considered a qualified retirement plan.
- Your Worker’s Compensation Award.
- Up to $30,000.00 in equity in your home / condo.
- Tools of the Trade – up to $1,500.00.
- Vehicles – up to $4,800.00.
- Wild Card Exemption – up to $4,000.00