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.