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What Everybody Should Know About Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Has Unique Advantages Over Chapter 7

When you go to Joseph Wrobel, Ltd. to talk about your rights and options in the Bankruptcy Code you will learn about Chapter 13 bankruptcy and all how it solves the problem of limitations you may face with Chapter 7 bankruptcy. The main differences between Chapter 7 (discharge) and Chapter 13 (reorganization) are: 1) The total amount of debt discharged versus repaid; 2) Immediate discharge versus three to five years of debt repayment; 3) Chapter 13 is an option if you don’t qualify for Chapter 7; 4) You want to keep your home and certain assets, protecting them from sale.

The bankruptcy code is complex and applies specifically to everyone’s unique financial situation. Whether you qualify for Chapter 7 or 13 can be determined when you meet with a consumer bankruptcy attorney at Joseph Wrobel, Ltd., and your specific financial details are properly analyzed.

Chapter 13 Bankruptcy Stops Bill Collectors

When you file a petition for Chapter 13 bankruptcy, you immediately get protection with the automatic stay provision of the bankruptcy code. The automatic stay immediately prohibits most collectors from continuing activities to collect a debt. Therefore, during your reorganization bankruptcy you should not receive phone calls and mail from collectors.

The automatic stay is especially useful if you are facing eviction, foreclosure, losing basic utilities, losing unemployment benefits, being found in contempt for failure to pay child support or losing your job because of wage garnishments.

The consumer bankruptcy attorneys and staff at Joseph Wrobel, Ltd can explain how you can stop bill collectors in their tracks while you get back on track financially. Read more articles about Chapter 13 bankruptcy and the automatic stay provision on our website, ChicagoBankruptcy.com, tag archives: automatic stay.

Keep Your House and Get Caught Up on the Mortgage with Chapter 13 Bankruptcy

Chapter 7 and 13 are different as they address issues of asset ownership and debt repayment. Where in Chapter 7 you must qualify for a bankruptcy discharge of debts and obligations, there is no real mechanism to help you keep a house in which you have equity. Also, if you make too much money and do not qualify for Chapter 7, you can still file a Chapter 13 bankruptcy to pay back a portion of your debts over time.

With Chapter 13, you can stop the foreclosure process and keep your house while you catch up on your mortgage payments and get current. Some exceptions may apply where you have previously filed and dismissed bankruptcy cases, so it is important to talk to your experienced bankruptcy attorneys at Joseph Wrobel, Ltd., to find out your rights and options in the bankruptcy code to get you a fresh financial reboot.

Take Three to Five Years to Pay Back Portions of Your Debts with Chapter 13 Bankruptcy

Financial emergencies can strike anyone at any time. When you file for Chapter 13 bankruptcy you can agree to a debt repayment plan, for an agreed portion of your debts owed (depends on your specific income and finances) over three to five years. The longer term for repayment afforded by Chapter 13 allows people to catch up on missed mortgage and car loan payments, for example, while they focus on paying off priority non-dischargeable debts, the ones that do not go away with bankruptcy.

Call Joseph Wrobel, Ltd. and Learn How Chapter 13 Bankruptcy Can Solve Your Financial Problems

When you call Joseph Wrobel, Ltd. you can make an appointment to meet with an attorney in one of our multiple Chicagoland city and suburban office locations and learn where you stand. Joseph Wrobel wants you to take control of your finances, so you can decide if filing for a Chapter 7 or 13 bankruptcy makes sense is valuable to you. For more information about Chapter 13 bankruptcy call us at (312) 781-0996.

Taking the sting out of bankruptcy: You may be surprised how liberating it can be

There are many people who consider filing for bankruptcy for a while before they finally decide it is time to go ahead. Some of the common fears people have is that everyone will find out about the bankruptcy and shun them or talk behind their back. In all likelihood, the people you think may be doing so well may also be considering a Chapter 7 or Chapter 13. It is important to remember that a bankruptcy does not mean failure – a bankruptcy means you are smart enough to take advantage of the law to protect you and give you a fresh start. People may be hesitant to file for bankruptcy because a friend told them incorrect information about the trustee coming to take and sell everything they own; this is a false myth. Credit scores are another concern many have, and they fear they will never get credit again, when in reality many lenders may look more favorably on you after you no longer are buried under a mountain of debt. While it is not the most common topic of conversation, many will tell you the relief they experienced after they filed for bankruptcy and got the mountain of debt and creditors off their back.

People are not likely to find out about your bankruptcy unless you tell them.

In years past, there may have been a more negative stigma to bankruptcy and small town newspapers published names and cases, possibly for the benefit of any creditors and providing them notice. In reality today, there are so many bankruptcy filings, especially in major cities like Chicago, that the newspaper would be massive if bankruptcy filings were posted. Unless you decide to tell people, your friends and neighbors will never know you filed for bankruptcy protection. There is a federal bankruptcy website where you can look up your own bankruptcy information and it will appear on your credit report and on background checks. Do now worry however, as more people have bankruptcies than you may realize and they still find new jobs, buy homes and cars.

It is not an immoral or unethical decision to take advantage of financial laws like bankruptcy.

Say you are sued by a creditor and they obtain a court judgement against you for $50,000. Yes, you can list that money judgment in your bankruptcy and wave goodbye to paying that off. For many people, the threat of a judgment being collected by wage garnishments and asset seizures is enough for people to decide to file for bankruptcy. Some people worry that the judge or court may be mad at you, but that is of no concern. A money judgment is just a court order to pay someone. The obligation to pay a debt can be discharged in bankruptcy – the whole point is to eliminate debts you cannot afford to pay so you can have a fresh financial start.

You can keep your car, house and belongings despite filing for bankruptcy.

There is a qualifying financial test called the Means Test and a bankruptcy lawyer can review your financials and advise you whether you qualify for a Chapter 7 discharge, the traditional bankruptcy most of us think about, or a Chapter 13 reorganization, in which you can make payments to catch up on your debts over a three to five-year period. If your vehicle is financed, you can sign a reaffirmation agreement and keep making payments despite the bankruptcy. You are allowed to keep a certain amount of equity in your home and personal belongings and assets up to a certain exemption value, despite filing for bankruptcy.

One of the best things about a bankruptcy filing is that by law, the automatic stay provision of the bankruptcy laws kicks in when you file your petition for bankruptcy – creditors and collectors must stop all collection activity and they can no longer call you while you are in bankruptcy. The stress relief of the automatic stay provision alone may bring you to a major sigh of relief.

Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with best credit repair options.      

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start.

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