difference between chapter 7 and chapter 13 bankruptcy Illinois Archives

Preparing for Your Bankruptcy Consultation

January 30, 2022

If you have scheduled an initial consultation with a bankruptcy attorney, you will want to prepare by gathering documentation and other information needed to determine your eligibility for bankruptcy. You will want to provide your bankruptcy attorney with proof of income; recent tax returns; a list of debts including loans, credit cards, medical bills; and a list of household expenses that you make every month which may include rent, food, or insurance. It is also helpful to anticipate … [Read more...]

Student Loan Repayment Pause Extended

December 30, 2021

The student loan repayment pause which was set to end February 1st is now been extended until May 2022. The pause on the repayment of federal student loans in response to the Covid-19 pandemic has provided many Americans with needed financial relief with the extension giving those who have fallen behind financially a few more months to come up with a plan to tackle their financial difficulties. For some, chapter 7 or 13 bankruptcy is a good strategy to recover from the economic downturn that … [Read more...]

Bankruptcy Protection for Medical Debt Lawsuit

November 20, 2019

On paper, middle class earners appear to be able to afford their bills, but the reality is that many are struggling financially, particularly when you stack on medical expenses that are not covered by high deductibles. When push comes to shove, families have to prioritize payment of necessities such as housing, transportation and food, which sometimes means leaving medical bills unpaid. In the past, hospitals and clinics were reluctant to legally pursue patients with delinquent accounts … [Read more...]

Understanding Bankruptcy Protection

June 28, 2019

When someone finds themselves with too much debt making it difficult to meet their financial obligations, they may consider bankruptcy protection. Bankruptcy is a court process that can provide protection from creditors. The two main types of bankruptcy a debtor can consider are Chapter 7 and Chapter 13. Illinois Chapter 7 Bankruptcy Protection Chapter 7 Bankruptcy, sometimes referred to as a debt liquidation bankruptcy, can help debtors to discharge or cancel debt such as medical bills or … [Read more...]

When Medicare is Not Enough | The Graying of Bankruptcy

January 24, 2019

Many believe that Medicare will cover the healthcare needs they have as they age, but there are substantial expenses above and beyond what Medicare pays that can have significant financial consequences for seniors. Many older Americans quickly realize they are on the hook to make up the difference for medical costs Medicare does not cover or pay for additional insurance to bridge the gap and then some. Older Americans Seeking Bankruptcy on the Rise Americans 65 and older spend an average of … [Read more...]

Should I file for bankruptcy?

March 26, 2018

Only you can decide if bankruptcy is a good strategy for you after visiting with an experienced bankruptcy attorney. Your attorney can take a look at your debt and expenses compared to your income to determine if a chapter 7 liquidation bankruptcy or a chapter 13 repayment bankruptcy is appropriate for your circumstances. Will My Credit Be Hurt By Filing Bankruptcy? If you elect to move forward with the bankruptcy, you may be concerned that your credit will suffer. It is true that bankruptcy … [Read more...]

Should I File a Chapter 7 or Chapter 13 Bankruptcy?

October 24, 2017

Chapter 7 and Chapter 13 are the two main bankruptcy options available to people overrun by consumer debt. Before we look at the differences between the bankruptcies, there are two important terms to understand when considering bankruptcy: Unsecured debt and secured debt. Differences Between Secured and Unsecured Debt in a Bankruptcy Unsecured debt means that someone loaned you money without a lien. Credit cards and student loans are good examples of unsecured debt, because there's nothing … [Read more...]

Filing Bankruptcy Before or After a Divorce

August 18, 2017

Not surprisingly, many who have been through a divorce may inevitably consider bankruptcy protection because of the costs associated with ending a marriage. First of all, obtaining a legal divorce can be expensive. Retaining an attorney often costs thousand of dollars and, if it is a contested divorce, legal expenses can add up quickly. Typically as part of a divorce settlement, martital assets will be divided, which may decrease savings and retirement account balances as well as result in … [Read more...]

Illinois Chapter 12 Bankruptcy

March 23, 2016

Chapter 12 bankruptcy is a form of bankruptcy law specifically designed to protect family farmers and fishermen and is very similar to Chapter 13. Chapter 12 has a limited application, however, as only family farmers or fisherman with "regular annual income" may seek protection. Seasonal income is sometimes allowed if a debtor can demonstrate an ability to make regular payments. Individuals, corporations and partnerships are eligible to file Chapter 12 bankruptcy if they meet certain criteria … [Read more...]

The Difference Between Chapter 7 and Chapter 13 Bankruptcy Illinois

January 5, 2016

Chapter 7 bankruptcy is what many think of as wiping the slate clean and getting a fresh start. This type of bankruptcy is a liquidation bankruptcy designed to erase general unsecured debts such as credit cards and medical bills. In order to qualify for Chapter 7, you must have little or no disposable income. When you file, a trustee is appointed to administer your case to review your bankruptcy papers, supporting documents, and to arrange the sell of your nonexempt property to pay back your … [Read more...]