Benefits of Filing for Chapter 13 Bankruptcy

 Posted on February 13, 2025 in Chapter 13 Banruptcy

When your debts become too overwhelming to manage on your own, a Chapter 13 bankruptcy can give you some much-needed relief. That being said, the process of filing for bankruptcy is anything but easy. You will have to draft a full repayment plan and attend a court hearing to get final approval from a judge. An Illinois bankruptcy attorney can guide you through the steps, making sure your rights are protected.

Attorney Colleen Thomas has over a decade of experience in bankruptcy law. When you work with our firm, you can take heart knowing that Attorney Thomas will handle your case personally, rather than passing it off to another lawyer or a paralegal.

There are numerous benefits to filing for Chapter 13 bankruptcy. We can assess if you are eligible for this type of bankruptcy and take the steps to file the petition on your behalf.

Protection from Creditors

If you are late on secured loan payments with collateral, your creditors could threaten to seize that collateral. This is especially concerning for mortgages, as you could be at risk of foreclosure if you fall behind on payments. A creditor can also seize your vehicle for delinquent payments on a car loan, leaving you and your household without reliable transportation.

You may start to receive threatening letters or calls from creditors demanding payment on your debts. But as soon as you file a petition for Chapter 13 bankruptcy, these threats must stop immediately. If your petition is approved by the court, your collateral property will be safe for as long as your bankruptcy lasts.

Restructuring Debts

In a Chapter 13 bankruptcy, you can submit a new payment plan to handle your debts. This can allow you to prioritize more urgent debts like taxes or child support, while also making payments on secured debts like your mortgage.

A bankruptcy attorney can help you draft a realistic repayment plan. These plans typically last for three to five years, during which you will be expected to make regular payments.

Discharge of Debts

After completion of your repayment plan, you may be able to have your remaining unsecured debts wiped away. This is known as a discharge of debts.

Unsecured debts include any debts not tied down to collateral, such as credit card debt or student loans. However, keep in mind that bankruptcy will still appear on your credit report and in background checks. A bankruptcy attorney can help you plan for the future, prioritizing your long-term interests.

Meet With a McHenry County, IL Chapter 13 Bankruptcy Attorney

Filing for Chapter 13 bankruptcy can help you overcome debt, but can have serious implications. If you are worried about foreclosure or the loss of your other assets, a Kane County, IL bankruptcy lawyer can work to help you draft a new repayment plan. At The Thomas Law Office, we can provide you with legal assistance and representation to address your outstanding debts.

Regardless of whether you are dealing with student loans, a mortgage, credit card debt, or other bills, Attorney Colleen Thomas is ready to assist. To schedule a consultation, call our offices at 847-426-7990 or contact us online today.