Bankruptcy: Chapters and Why a Lawyer Can Help

When financial difficulties arise, you may wonder if bankruptcy is an option for you. There are several different types of bankruptcy filings. An experienced bankruptcy attorney in Gurnee IL can help you determine if bankruptcy is right for you. Here are the chapters of personal bankruptcy and why a lawyer can help from the Tomei Law P.C. 

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy allows low-income individuals and couples to completely erase qualifying debts. Under Chapter 7 bankruptcy, there are no waiting periods and no payment plan. You simply declare your debts and your bankruptcy exemptions. Exemptions allow you to keep items that you need to live and may include basics like a house, vehicle and medical equipment. To file Chapter 7 bankruptcy, you must meet state-specific income limitations. 

Chapter 13 Bankruptcy

Another chapter of bankruptcy filing is Chapter 13. A Chapter 13 bankruptcy is appropriate if you want to use the bankruptcy proceeding to get caught up on overdue loans including your home mortgage and vehicle loans. It may also be appropriate if your income is too high to qualify for a Chapter 7 filing. 

With a Chapter 13 bankruptcy plan, the debtor makes monthly payments for a period of time. The payments allow them to get caught up on some debts and stop repossession actions. At the end of the payment period, the remaining, qualifying debts are wiped clean. Chapter 13 payments are set at a reasonable amount based on the income of the debtor. 

Other Types of Bankruptcy Filings
If you represent a business, there may be other bankruptcy chapters that may be advantageous to the business. Attorney Robert Tomei and the team of the Tomei Law P.C. can help you understand what chapter of bankruptcy may be most advantageous for you to file under. For an experienced bankruptcy attorney in Gurnee IL that can help you determine what bankruptcy may be able to do for you, contact Robert and his team for a consultation today.