Benefits of Bankruptcy in Illinois

Chicago Bankruptcy Attorney

The specific benefits of filing for bankruptcy are varied, as it depends on whether you file under Chapter 7 or Chapter 13, as well as the specific circumstances of your financial situation. Perhaps the most important benefit at the start of the Chicago bankruptcy process is that all debt collection efforts must cease once you file your bankruptcy petition. Filing for bankruptcy can give you much-needed breathing room as you figure out what to do to save your home from foreclosure or what debts you wish to reaffirm so you can keep certain property.

It is a common misconception that filing for bankruptcy means you automatically lose your home, your car, all of your possessions, and that you cannot rebuild your credit in the future. It is important to understand that this is simply untrue. When filing for bankruptcy in Chicago, you can ensure that certain assets are protected, particularly when you file under Chapter 13 and undergo a reorganization of your debt, rather than a liquidation of your assets.

Stop Foreclosure with Ch. 13 Bankruptcy

If you have been faced with the prospect of losing your home, you may be wondering what steps to take next. Nothing is more overwhelming than the idea of losing the property that you have worked so hard to obtain, but it is important to understand that there may still be time to stop an impending foreclosure.

By filing for bankruptcy in a timely manner, you may be able to delay or even stop foreclosure in its tracks. Since the court can order an automatic stay as soon as your bankruptcy petition has been approved, all creditors will be prohibited from continuing their collection efforts until the process has been concluded, which encompasses foreclosure, wage garnishment and repossession efforts. If you are filing under Chapter 7, this may only give you a few months to develop a plan. If you are filing under Chapter 13, however, you may have a better chance of successfully combating the loss of your home.

Chapter 13 bankruptcy would provide the following:

• Opportunity to reorganize your debt
• Create a more manageable repayment plan
• Take place throughout a three to five year period of time

Assuming that you have enough income to make payments on your home while concurrently paying off your debt—you may stand a much better chance of keeping your house once the process is over. To determine which course of action is right for you, however, seek the advice of our bankruptcy attorney.

Get a Fresh Start with Our Help

When a Chapter 7 bankruptcy or Chapter 13 bankruptcy has been successfully completed, it means that all eligible debt is discharged. You may be free and clear of all eligible debt and may no longer have further obligation to those creditors. This is the final goal of any bankruptcy case and the reason that it can benefit a debtor so greatly. Bankruptcy law truly offers debtors a second chance and a fresh start, so our Chicago bankruptcy law firm would be proud to help you through this process.