Bankruptcy Lawyer Bolingbrook IL – ASM Law – Call 847-231-3999
Bankruptcy Lawyer Bolingbrook IL
Filing for bankruptcy can be the first step for someone in deep financial trouble because it can, in some cases, relieve some types of debt. However, even after filing for bankruptcy, the debtor will still be responsible for paying debts like:
-Overdue spousal or child support.
-Student loans. (There are some exceptions.)
-Most types of unpaid taxes.
-An order to pay criminal restitution.
-Debts owed on account of theft, fraud or embezzlement.
-Damages to another individual resulting from drunk driving.
-Debts resulting from a property settlement as part of a divorce.
It’s essential to act sooner rather than later if you are having difficulty covering your bills and your debts are growing. Talk to a Bankruptcy Lawyer Bolingbrook IL for an evaluation of your case and to learn if proceeding with a bankruptcy filing is a good option for you.
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It’s also helpful to know that a bankruptcy filing does not:
-Prevent eviction. If a court orders an eviction before the debtor files for bankruptcy, the eviction can move ahead.
-Protect you against credit card debt that exists before filing.
-Wipe away debts that accumulate after filing for bankruptcy.
-Discharge debts which the court determines you must pay if you have sufficient income.
Ask your Bankruptcy Lawyer Bolingbrook IL for more information about which types of debt can or cannot be eliminated through a bankruptcy filing.
Bankruptcy and Marriage
If you are married, you do not have to file for joint bankruptcy along with your spouse. However, you’ll still need to provide information including your spouse’s income on some bankruptcy paperwork.
In a Chapter 13 bankruptcy filing you’ll have to pay back your creditors. Although, you may be able to keep properties that are secure through a lien. This can also protect a home against foreclosure or prevent repossession of a vehicle.
A Chapter 13 plan can halt an eviction in the event you file before you receive a five-day notice. (The eviction will stop only if you’re able to repay the rent you owe according to the Chapter 13 payment plan.)
As part of a Chapter 13 filing for bankruptcy, you’ll propose – with advice from your Bankruptcy Lawyer Bolingbrook IL – a repayment plan in court. Payments according to the plan will be made by a trustee. The trustee typically will charge a fee of ten percent of all collected funds. The trustee then makes payments to creditors.
Before presenting a payment schedule, you must demonstrate that you are able pay your standard living expenses. Generally, this includes food, clothing, rent, transportation and utilities.
The type of income does not matter, but it must be consistent. You’ll need to have enough remaining after expenses to cover payments according to the plan. The payments sent to the trustee in compliance with the repayment plan are to pay down the remaining debts.
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In some situations, you may not be able to pay all your debts via the repayment plan. If this occurs, the balance remaining on the debt may be dischargeable. However, you may only receive a debt discharge if you make your best possible effort to repay. In this situation, liens are not dischargeable.
They must be paid through the bankruptcy payment plan.
A Chapter 13 filing for bankruptcy lasts for three to five years. The duration of time is dependent upon your income. In the event your income is higher than the state’s median income, bankruptcy lasts for five years. Also, if your income is lower that the median Illinois income, it lasts for three years.