Stop Foreclosure – Chapter 13

Rockford, Illinois

Chapter 13 Bankruptcy is designed for individuals who want to keep their homes or cars but have fallen behind on payments. It is also designed for individuals who cannot discharge their debts in a Chapter 7 Bankruptcy. Chapter 13 can consolidate overdue payments and repay pre-filing arrears in monthly payments for a period of up to 5 years.

The Chapter 13 Process:

In our initial meeting with you we review your financial situation. If we mutually agree that Chapter 13 is your best alternative, then we will prepare a Chapter 13 Plan. This plan will provide for monthly payments for three to five years. This one monthly payment will be paid to the Bankruptcy Trustee who distributes the plan payments to the creditors. When all of the plan payments have been made, you will receive a discharge.

The amount of your monthly payment depends on your monthly income and expenses. It also depends on the amount of debt and whether the debt is secured like a (home mortgage or an auto loan) or unsecured debt such as (credit cards, personal loans or bank loans which are not guaranteed by a government agency).

Pratt & Maegli Law Firm will also help you by reducing some unsecured debts — allowing you to pay back just a fraction based on your available monthly income, in some cases as little as 10% of the total! Other debts must be paid in full, such as non-dischargeable priority debts. These include child support arrears, alimony or maintenance arrears, taxes owed government authorities, criminal fines, restitution, and all debts reduced to a judgment prior to the bankruptcy filing. Secured and priority debts, such as your home mortgage, must also be paid in full.

Stop Foreclosure – Chapter 7 Bankruptcy

Chapter 7 Bankruptcy seeks to wipe out (discharge) all debts which are allowed to be liquidated with no repayment to the creditors.

The goal is to provide individuals with a new beginning by wiping out all dischargeable debts including credit card bills, medical bills, personal loans, judgments obtained by creditors, business related debts, and commercial and residential leases.

Non-Dischargeable Debts

Certain debts cannot be wiped out in chapter 7 bankruptcy. They are classified as non-dischargeable debts and include:

• Alimony, maintenance, and child support obligations
• Student loans (except in extreme hardship cases)
• Fines, penalties, and criminal restitution
• Debts incurred as a result of intentional injury to a person or property
• Taxes owed governmental authorities
• Government guaranteed loans

The Chapter 7 Process:

Once we determine that a chapter 7 bankruptcy is the right solution, you will provide us with certain documents (i.e. last two years of tax returns, recent pay stubs, copies of all your debt statements) so that we can prepare the Chapter 7 petition. Once we prepare and file the documents with the Bankruptcy Court all creditors are prohibited from taking additional action to recover the debt. This prohibition is called a Bankruptcy Stay. The Stay remains in effect throughout the bankruptcy process.

Approximately 30 days after the filing of the Bankruptcy you will appear with an attorney from Pratt & Maegli Law Firm at a meeting with the Chapter 7 Bankruptcy Trustee assigned to your case. This meeting lasts approximately 15 minutes. The Trustee reviews your petition and asks a few questions concerning your expenses and income. Assuming the Trustee requests no further information, your case will be closed. 60 days after the meeting, if there are no objections from your creditors you will receive a discharge of all your dischargeable debts.

For a FREE consultation email or call at (815) 315-0683

Chicago Bankruptcy Attorney – Frozen Bank Accounts