Oak Park Real Estate & Estate Planning Blog

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...

Debtors in the Oak Park area who file for Chapter 13 bankruptcy do so for many different reasons. In some situations, your income may not allow you to file for Chapter 7 bankruptcy (in other words, you might not pass the “means test”). In other situations, you may not want a liquidation bankruptcy and feel confident in plans to repay creditors over the course of several years. In many cases, debtors file for Chapter 13 bankruptcy because it can prevent foreclosure and allow the debtor and his or her family to keep their home. Regardless of the reasons that you filed for Chapter 13 bankruptcy, what happens if you want to modify your payment plan? Can you modify your Chapter 13 bankruptcy payment plan ? What happens if you cannot make the payments outlined in your plan? Background on Chapter 13 Bankruptcy As a brief reminder, as the U.S. Courts website explains, Chapter 13 bankruptcy is one of two common types of bankruptcy for individuals. Typically, an individua...