Prevent Car Repossessions Through Chapter 7 or Chapter 13 Bankruptcy

Rockford, Illinois

You may prevent car repossessions and keep your home in a chapter 7 bankruptcy by reaffirming the debt or by obtaining a loan modification through the Pratt & Maegli Law Firm. Alternatively, if you have only fallen behind on your car or home payment you may get caught up in a Chapter 13 Bankruptcy.

The Chapter 7 Bankruptcy

The goal of a Chapter 7 Bankruptcy is to wipe out (discharge) all debts which are allowed to be eliminated with no repayment. This is different than a Chapter 13 bankruptcy.

We provide individuals with a new beginning and a fresh start by wiping out all dischargeable debts including credit card bills, medical bills, judgments obtained by creditors, personal loans, business type debts, and commercial and residential leases.

Non-Dischargeable Debts

Some debts cannot be wiped out in bankruptcy. These non-dischargeable debts include:

• Maintenance, Alimony and child support obligations;
• Most taxes owed governmental authorities
• Government guaranteed loans
• Fines, penalties, and criminal restitution
• Debts incurred as a result of intentional injury to a person or property
• Most Student loans

The Process:

Once we determine that a chapter 7 bankruptcy is right for you, you will need to provide us with some documents, such as your last two years of tax returns, recent pay stubs, copies of all of your debt statements. We need these documents in order to prepare the Chapter 7 Petition and Schedules. Once we draft and file the court documents with the Bankruptcy Court all creditors cannot take any additional action against you to recover debt. This prohibition is called a Bankruptcy Stay. The “Stay” is in effect throughout the bankruptcy process.

Approximately one month after the filing of the Bankruptcy you will appear with one of our attorneys from Pratt & Maegli Law Firm at a meeting with the Chapter 7 Bankruptcy Trustee assigned to your case. This meeting lasts approximately 20 minutes. The Trustee examines your Petition and asks some questions about your income and expenses. Assuming that there is no further information requested, your case will be concluded. Approximately two months following the meeting, if there are no objections from your creditors you will receive a discharge.
Contact us today to talk to us about your specific situation and decide if filing for bankruptcy is right for you.

The Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is for clients who want to keep their homes or cars, are behind on payments and can afford to get caught up over a three to five year period. It is also designed for clients who are unable to discharge their debts in a Chapter 7 Bankruptcy. Chapter 13 consolidates overdue bills and repays pre-filing arrears in monthly payments for a period of up to 5 years.

The Chapter 13 Process:

In our initial consultation with you we will look at your entire financial situation. If we agree that a Chapter 13 Bankruptcy is your best alternative, then we prepare a Chapter 13 Plan that suits your circumstances and abilities. This plan provides for one monthly payment to the Bankruptcy Trustee who, in turn, distributes the payments to your creditors. When you have made all of the payments then you receive a discharge of all debt. Your monthly payment depends on your income and expenses. It also depends on how much debt you have and what type of debt you have (home mortgage or auto loan) or whether it is unsecured debt (credit cards, etc).

Pratt & Maegli Law Firm will also help you by reducing some unsecured debts, thus allowing you to pay just a fraction of the debt based on your available monthly income. In some cases you may pay only 10% of the debt. Other debts, such as non-dischargeable priority debts, must be paid in full. These include Maintenance/Alimony, child support, taxes owed, criminal fines and restitution.