Chapter 13 Bankruptcy

Posted on December 21st, 2020 by Giannola Legal LLC

With multiple types of bankruptcy, you may not know which is most relevant to your needs. Our bankruptcy attorney near DuPage County, Il has the experience you need to navigate your financial needs and provide you with a clear path forward. 

We encourage you to assess if Chapter 13 bankruptcy is right for you by taking advantage of our free consultations. 

Eligibility

Not everyone qualifies for Chapter 13 bankruptcy. Businesses cannot file for Chapter 13 bankruptcy under the name of the business itself. You also will not qualify for this particular type of bankruptcy if your secured debts exceed $1,257,850 or if your unsecured debts exceed $419,275. 

Your income tax filings also must be current and you’ll need to submit proof of filing both federal and state income taxes for the four years before your bankruptcy filing date. 

The Basics

In this type of bankruptcy, you repay your debts over a period of 3-5 years. While many people file for Chapter 7 bankruptcy because filers don’t need to pay back creditors, some people in debt simply don’t qualify. 

Many people turn to Chapter 13 to prevent a home from going into foreclosure, to help make up for a missed mortgage or car payments, or to stop interest from accumulating on local, Illinois state, or federal tax debt. 

This particular type of bankruptcy allows those in debt to slowly make up for overdue payments while simultaneously allowing them to hold onto their nonexempt property. 

Contact Our Team Today

Bankruptcy is a complicated area of law that may be difficult to fully understand without talking to our bankruptcy attorney near DuPage County, Il. To learn more about whether or not you qualify, get in touch with us at Giannola Legal LLC for a free consultation.

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