Lynch Law Offices, P.C.
Call Us Now for a FREE Consultation:
800-491-7493
Offices in Four Convenient Locations

Chapter 13 advantages and disadvantages in Illinois

Being behind on one's bills is nearly a national pastime in the United States these days. With the rise in costs of living generally outstripping real wage rates, many Illinois residents, as with people throughout the country, find themselves in a position where they cannot make all their payments every month. Having to pick and choose whom to pay and what one goes without can be stressful, and impact not only one's mood, but one's physical health as well. When this begins to happen, people may want to begin considering whether filing for bankruptcy is a logical choice.

Simply deciding to file for bankruptcy protection is not the only choice to be made, however. One of the other decisions is what kind of bankruptcy is best for the individual's situation. As readers of this blog may remember, there are two major forms of bankruptcy available to most individuals. These are 'Chapter 7' and 'Chapter 13.' While chapter 7 will discharge most debts, it may also result in the loss of certain property. Chapter 13, on the other hand, will require repayment of some debt, but may serve to help protect things important to the filer.

So what are some of the 'pros and cons' of filing for Chapter 13? First off, as mentioned above, people who own property that has some equity, like a house or a car, may benefit from Chapter 13 in that they can retain the property while making payments on the bankruptcy payment plan. These payment plans will last from three to five years, and will take up all of a filer's 'disposable' income, but after successfully completing the payment plan, the debtor may have the remainder of the debt discharged. Chapter 13 bankruptcy will affect a filer's credit for up to 10 years, but missing payments that the debtor cannot make will also affect this rating.

It should also be remembered that as with other forms of bankruptcy, Chapter 13 will not discharge certain debts, such as alimony, child support, and in most instances, student loans. Whether bankruptcy is a good idea in any given situation, and what kind is best is a question that may cause Illinois residents to consider speaking with an experienced bankruptcy attorney.

No Comments

Leave a comment
Comment Information

How Can we Help You? Contact An Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Four Convenient Office Locations To Serve You

Toll Free: 800-491-7493 Fax: 888-691-8337

Five Convenient Office Locations To Serve You

Lisle Office - DuPage County
1011 Warrenville Road
Suite 150
Lisle, IL 60532

Map & Directions

Lockport Office - Will County
900 South State Street
Second Floor, Suite A
Lockport, IL 60441

Map & Directions

Aurora Office - Kane County
1444 North Farnsworth
Suite 100
Aurora, IL 60505

Map & Directions

Palatine Office - Cook County
800 East Northwest Highway
Suite 700
Palatine, IL 60074

Map & Directions

Chicago Office - Cook County
1 S Dearborn
Suite 2100
Chicago, IL 60603

Map & Directions

Toll Free: 800-491-7493 Fax: 630-960-4755