Considering Bankruptcy? Here’s What You Can Expect.
Filing for bankruptcy is not an easy decision to make even if you are drowning in debt. Confusion about the process and your role in it can create mental barriers that make it difficult to move forward.
If you are concerned about taking the next step to securing the financial freedom you deserve, contact our team at NextStep Bankruptcy Law. Our attorneys are dedicated, diligent legal professionals who have extensive experience with consumer bankruptcy. When you hire us, you won’t have to face the bankruptcy process alone because we will remain by your side every step of the way.
Whether you are considering filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, we are qualified to assist you. Before you file any paperwork, please read these summaries below.
Chapter 7 Proceedings
Not everyone qualifies for Chapter 7 bankruptcy protection. Before you submit your petition, you will need to show that you do not have the disposable income required to pay off your debt. If we are able to prove that you pass the means test, we can then begin the filing process.
Chapter 7 bankruptcy proceedings can take as little as three to four months to complete. During this time, a bankruptcy trustee reviews your financial situation to identify property that may be sold to pay off your debt. In Illinois, there are strict guidelines that determine which property may be sold and which property is protected.
In order to complete the process, you’ll also need to provide financial and legal documentation, attend a meeting with your creditors and complete a course on managing your finances. This process can seem overwhelming when you navigate it alone. With our help, you can be certain that your paperwork is completed on time and submitted to the appropriate parties.
Chapter 13 Proceedings
Individuals who do not qualify for Chapter 7 bankruptcy can file for Chapter 13 bankruptcy protection. Rather than liquidating your debt, you can restructure it through this process. While this bankruptcy option takes longer to navigate and is more complex, there are many benefits associated with this approach.
As with the Chapter 7 bankruptcy process, Chapter 13 applicants need to file a bankruptcy petition, attend financial management courses, meet with their creditors and rely on a trustee to intercede with creditors. In addition, there are more meetings to attend with creditors and the trustee. In order to satisfy the terms of your plan, you will need to make all your payments on time and in full. Missing a payment could prolong or halt the bankruptcy process.
Most proceedings conclude after three to five years. Successfully completing this process may allow you to hold onto your home and catch up on car payments and debt that cannot be discharged through bankruptcy.
Take Your Next Step With Us
We understand that this is a lot of information to digest. If you are confused or have questions, consult with us for free and get the answers you need. You can easily arrange a private meeting with a Chicago bankruptcy lawyer by calling 312-667-7717 or emailing our firm.