Oak Park Real Estate & Estate Planning Blog

Can Chapter 13 bankruptcy save your home? While this might not be a question you have thought to ask yourself, the answer could be a resounding “yes.” Dealing with significant debt while also facing foreclosure can be extremely stressful, and if you have never been in a financial position like this before, you might be assuming that you do not have any options left. However, it is essential for you to know that Chapter 13 bankruptcy is a type of bankruptcy that not only allows consumers to reorganize their debt and catch up with creditors, but it can also stop a foreclosure from happening and allow a homeowner to remain in their home. So, if you are wondering whether Chapter 13 bankruptcy might be able to save your home, it is important to get in touch with a consumer bankruptcy attorney in Oak Park who can learn more about your financial circumstances to determine whether Chapter 13 bankruptcy is an option for you. How Can Chapter 13 Bankruptcy Stop Foreclosure? Many people wrongly a...

Are you thinking about filing for Chapter 13 bankruptcy ? You may know that Chapter 13 bankruptcy is one of two common types of bankruptcy for individuals or consumers, and it is a form of reorganization bankruptcy. What that means is that none of your assets will be liquidated in the bankruptcy process. Rather, Chapter 13 bankruptcy will allow you to reorganize your debts. If you want to file for Chapter 13 bankruptcy, one of the eligibility requirements involves showing that you do not have more debt than is permitted for this type of bankruptcy. In terms of Chapter 13 debt limits, there is good news for potential filers with a significant amount of debt: a recent change to the law means that the Chapter 13 debt limits have increased for at least two years, and that increase could be extended into the future. What should you know about Chapter 13 bankruptcy and the increase in debt limits? Consider the following information from our Oak Park bankruptcy lawyers. What is Chapter 13 Ban...

When debtors in the Oak Park area file for Chapter 13 bankruptcy , they create a repayment plan that lasts for a period of three to five years. During that time, the debtor will make regular payments to the Chapter 13 bankruptcy trustee, who will then pay creditors. Once the debtor completes the terms of the repayment plan, remaining eligible debts can be discharged. However, during that period of three to five years, a debtor’s circumstances can change. For example, a debtor might get laid off from their job and may be unable to find work. Or, the debtor might suffer a workplace injury or be diagnosed with a debilitating disease that prevents that debtor from returning to work in a meaningful capacity and earning a regular income that will allow that debtor to continue making Chapter 13 plan payments. In short, circumstances can change, and a debtor might struggle to make regular payments. If you are currently making payments as part of a Chapter 13 plan but a change in circumstances ...

If you are planning to file for bankruptcy in Oak Park , you may already know about the importance of bankruptcy exemptions. For debtors who are planning to file for Chapter 7 bankruptcy, the significance of bankruptcy exemptions can be quite obvious: any property that is exempt through Illinois’s bankruptcy exemptions will not be liquidated as part of the bankruptcy case, and the debtor can keep that property while receiving a discharge of eligible debt. To be sure, many people assume that a Chapter 7 bankruptcy results in the loss of all property or assets, but this is a common bankruptcy myth. Bankruptcy exemptions available under Illinois law allow debtors to keep a wide range of assets, from equity in a home or motor vehicle to pensions and retirement accounts. Yet you might be wondering what role bankruptcy exemptions play in a Chapter 13 bankruptcy case, or if you need to consider the exemptions at all since you did not think Chapter 13 bankruptcy involved the liquidation of an...

If you are struggling with debt, you might be considering the possibility of filing for bankruptcy . Yet you might not understand the differences between Chapter 7 and Chapter 13 bankruptcy, and you may be much more familiar with how Chapter 7 bankruptcy works. Indeed, many Americans think of Chapter 7 bankruptcy—a liquidation bankruptcy—when they imagine the bankruptcy process. However, Chapter 13 bankruptcy works much differently, and it has many benefits for debtors who are eligible. Our Oak Park bankruptcy lawyers are here to tell you more. Eligibility as a Wage Earner You might have heard that you will need to pass the “means test” in order to be eligible for consumer bankruptcy and that you cannot have assets or substantial earnings in order to file. It is critical to understand that these requirements only apply to Chapter 7 bankruptcy and not to Chapter 13 bankruptcy. To qualify for Chapter 13 bankruptcy under the U.S. Bankruptcy Code , you will need to show that you have a...

When you are having significant difficulty paying your debts but you are continuing to work and need a long-term solution to getting your finances back on track, Chapter 13 bankruptcy could be a beneficial tool for you. There are different types of personal or consumer bankruptcy, and they have different eligibility requirements. Different kinds of personal bankruptcy also have specific ways of helping consumers with their debt, and some of the solutions are more immediate while others occur over a period of time. To determine the best type of bankruptcy for you, it is important to seek advice from an Oak Park bankruptcy lawyer who can evaluate the particular facts of your situations. In the meantime, however, the following are some questions you can ask yourself to get a head start on determining whether you may be a good candidate for Chapter 13 bankruptcy. Are You Seeking to Have All Eligible Debts Discharged and to Get a Fresh Start? If you are considering filing for bankruptcy...

When you are thinking about the possibility of filing for consumer bankruptcy , you may be considering Chapter 13 bankruptcy , particularly if you have a steady job or if you are hoping to stop a foreclosure on your home and to remain in that property. Chapter 13 bankruptcy is beneficial for so many Americans because it allows debtors to restructure their debts over a period of three to five years while taking advantage of the automatic stay, which can stop a foreclosure. Although the automatic stay does not mean that a debtor can remain in a home that is nearing foreclosure, in Chapter 13 bankruptcy in particular, it stops foreclosure proceedings from moving forward, and then the debtor can get back on track with mortgage payments through the Chapter 13 repayment plan. There are also many other benefits to Chapter 13 bankruptcy that an Oak Park bankruptcy attorney can discuss with you. In the meantime, we know that it can be difficult to understand how a Chapter 13 bankruptcy discha...

Making the decision to file for personal bankruptcy can be a complicated one, and it is important to reach that decision with guidance from an experienced consumer bankruptcy lawyer in Oak Park . While it is possible to file for bankruptcy without having an attorney, U.S. bankruptcy law is extremely complex, and there are many different reasons to have a lawyer on your side. The following are some of the top reasons to hire a consumer bankruptcy lawyer when you are considering Chapter 7 or Chapter 13 bankruptcy. You Will Need Assistance Determining the Best Type of Bankruptcy for You Although it is a common misconception, you cannot simply choose the type of bankruptcy for which you will file. To be clear, you cannot choose between Chapter 7 and Chapter 13 bankruptcy based on what you want to get out of the bankruptcy. Rather, you will need to prove that you are eligible for the particular type of bankruptcy for which you plan to file. Proving eligibility for Chapter 7 bankruptcy ...

If you are filing for Chapter 13 bankruptcy or you have already filed for Chapter 13 bankruptcy, you likely have some idea about how this process works. Unlike a Chapter 7 bankruptcy that results in your non-exempt property being liquidated to repay creditors so that you can obtain a relatively quick discharge, Chapter 13 bankruptcy is a much longer process. For most consumer debtors, the Chapter 13 bankruptcy process lasts between three and five years, after which point the debtor can have remaining debts discharged. Yet sometimes the debtor needs to seek a discharge earlier in the case. In such situations, it is important to learn more about a hardship discharge in a Chapter 13 bankruptcy case . Understanding How Chapter 13 Bankruptcy Works In order to understand why a hardship discharge may be necessary, you will need to have a clear understanding of the Chapter 13 bankruptcy process . As part of a Chapter 13 bankruptcy case, the debtor develops a repayment plan through which sh...

Many debtors who are struggling with overwhelming debt start looking into options for a liquidation bankruptcy in which their non-exempt assets will be liquidated and they can receive a relatively quick discharge that comes with the ability to get a fresh start financially. However, given that debtors must pass the “means test” in order to prove that they are eligible for Chapter 7 bankruptcy, many debtors realize that they cannot file for a liquidation bankruptcy under U.S. bankruptcy law since they earn a steady paycheck or earn a decent salary. For those debtors, Chapter 13 may be the only bankruptcy option. At first, you might have concerns about whether Chapter 13 bankruptcy is really what you are seeking, and you might be wondering, “What is Chapter 13 bankruptcy good for?” We want to emphasize that Chapter 13 bankruptcy is a powerful tool for debtors in Oak Park, Illinois and across the country, and it can help you to obtain the financial relief you are seeking. The follow...

When you are making plans to file for consumer bankruptcy , and Chapter 7 bankruptcy in particular, we know that you likely have a wide variety of questions about how bankruptcy exemptions work. In any personal bankruptcy case, it is critical to work with an experienced Illinois bankruptcy lawyer who can ensure that you take advantage of the variety of bankruptcy exemptions that may be available to you. In the meantime, however, we want to provide you with some frequently asked questions, and helpful answers, about exemptions in Chicago-area bankruptcy cases. What are Bankruptcy Exemptions? Bankruptcy exemptions allow debtors to protect certain property in a bankruptcy case. Exempt assets will not be considered for liquidation in a Chapter 7 case or as part of the repayment terms in a Chapter 13 case, according to U.S. bankruptcy law . Can I Choose Between Federal and Illinois State Bankruptcy Exemptions? There are both federal and state exemptions, but Illinois is one of a number ...

If you are thinking about filing for bankruptcy but have some flexibility in terms of when you actually file, you may have a number of questions about timing your bankruptcy filing, and concerns about how the timing of your bankruptcy filing might impact your ability to have certain debts discharged. In some situations and for some debtors, it might make sense to file for bankruptcy as soon as possible to have the benefits of the automatic stay under the U.S. Bankruptcy Code , while for other debtors, it could make sense to wait a certain amount of time to file if you have relatively recent debts that you are hoping will be eligible for discharge. If you are looking for more information about timing your consumer bankruptcy filing , you should ask yourself the following questions to get a general idea of how bankruptcy timelines could impact your case. Most importantly, you should seek advice from an Oak Park bankruptcy lawyer who can help. Have You Recently Earned More Money Than ...

If you are considering Chapter 13 bankruptcy or if you recently started the process of going through a Chapter 13 bankruptcy case, you should know that this process takes much longer than a Chapter 7 bankruptcy case. Before Chapter 13 debts can be discharged, the debtor will need to develop a repayment plan in order to “reorganize” debts, and consumer bankruptcies under Chapter 13 typically have a timeline of anywhere from three to five years. In other words, your bankruptcy case will take the length of your repayment plan (from three to five years, depending upon your income and other factors), in addition to the amount of time from filing until your repayment plan is approved. Once the terms of the repayment plan are completed, the bankruptcy court will need to review your case to determine whether remaining debts are eligible for discharge. What all of this means is that, in brief, a Chapter 13 bankruptcy case takes quite a long time. During that time window, professional and ...

When you are having difficulty making payments on your debts and are considering personal bankruptcy, you may be debating between Chapter 7 bankruptcy and Chapter 13 bankruptcy —the two most common types of consumer bankruptcy. These forms of personal bankruptcy are quite different from one another, and it is important to understand the distinctions. While both types of bankruptcy will ultimately result in a discharge of eligible debts, the timeline for each is quite different, and each type of bankruptcy has its own pros and cons. We want to tell you more about the benefits and limitations of Chapter 13 bankruptcy . If you need assistance filing, you should contact an Oak Park bankruptcy attorney as soon as possible. Pros of Chapter 13 Bankruptcy There are a number of benefits of Chapter 13 bankruptcy. For many people who file for Chapter 13 bankruptcy, one of the primary benefits is that it can allow you to avoid foreclosure on your home and to remain in your property. Chapter 7 ...

Personal bankruptcy is a complicated process, and it can vary widely depending upon whether a person files for Chapter 7 bankruptcy or Chapter 13 bankruptcy . In some cases where an individual consumer is ineligible for both Chapter 7 and Chapter 13 bankruptcy, that person may need to turn to Chapter 11 bankruptcy in order to get relief. We have discussed some of the shifts in personal bankruptcy cases that have occurred as a result of the COVID-19 emergency, and we have discussed the bigger overall picture of how coronavirus relief options, as well as debt issues, have changed the way in which consumers are filing for bankruptcy or are seeking to revise their bankruptcy plans. We want to focus on Chapter 13 bankruptcy cases today in relation to COVID-19. The following are key things to know about your Chapter 13 case and the coronavirus pandemic. Your Chapter 13 Repayment Plan Can Last Longer Than Five Years In a typical Chapter 13 bankruptcy case, the debtor develops a repayment p...

If you file for Chapter 13 bankruptcy , how difficult is it to convert your case to a Chapter 7 bankruptcy? If you are in the opposite situation where you filed for Chapter 7 bankruptcy but want to convert to Chapter 13, are you able to do so? There are many reasons to convert a consumer bankruptcy case from Chapter 13 to Chapter 7. At the same time, there are reasons that a debtor may want to convert a Chapter 7 case to a Chapter 13 case. What are the options for converting these types of bankruptcy cases, and why would a debtor consider doing it? The U.S. Courts provides key information about consumer bankruptcy and converting from one chapter to another. Converting from Chapter 13 to Chapter 7 Bankruptcy We will talk first about the process of converting a Chapter 13 bankruptcy case to Chapter 7. Why would someone want to convert from Chapter 13 to Chapter 7? There are a number of different reasons, but in many situation, a debtor may be unable to keep up wit...

When consumers in Oak Park start having significant difficult paying or their bills while accumulating more debt, the prospect of filing for personal bankruptcy can seem daunting. Some consumers feel ashamed about their financial situation, while others are concerned about the potential credit hit that could result from filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. However, consumers often see less of a hit to their credit than they would expect, and many are able to begin rebuilding their credit soon after filing for bankruptcy. Even more importantly, as a recent article in The Coalfield Progress argues, waiting to file for bankruptcy can hurt you even more in the long run. If you are thinking about filing for bankruptcy but continue putting it off—all while your debt load is becoming more and more unmanageable—it is important to talk with an Oak Park consumer bankruptcy lawyer as soon as you can. Waiting to File for Bankruptcy Usually Means More Str...