Bankruptcy Basics



Chicago bankruptcy attorney - When families are having trouble making ends meet, the American bankruptcy laws might be able to provide the help they need.



Chicago bankruptcy attorney - Bankruptcy is a court procedure in which people can either erase their legal obligation to pay off many types of debt, or reorganize your debt based on payments you can afford



Chicago bankruptcy attorney - Chapter 7 bankruptcy allows families can either erase their legal obligation to pay off most types of debt. Chapter 7 bankruptcy is sometimes referred to a liquidation because the bankruptcy trustee assigned to the case can sell a filer’s assets in order to repay a portion of the debt. However, bankruptcy exemptions protect many personal assets from being liquidated and most people who file Chapter 7 don’t lose any property at all.



Chapter 13 is basically a repayment plan and is also known as a "wage earner" bankruptcy because, the law requires, for a Chapter 13 plan to be approved, the filer must have a consistent income with which to make the required payments.



When consumers file for Chapter 13 , they have to propose a repayment plan that sets forth how you are going to pay back your debts over the next three to five years. The exact monthly payment that people are required to pay depend on individual circumstances such as income, the amount of debt, and what assets would be available for liquidation to repay creditors if the filer had filed a Chapter 7 bankruptcy.