Bankruptcy / Wage Earner
Bankruptcy Laws
Over 40 Years' Experience | Locally Owned Law Firm | Free Initial Consultations
Over 40 Years' Experience Locally Owned Law Firm Free Initial Consultations
Free Initial Consultations
Do You Have Bankruptcy Concerns?
There's still time to stop foreclosures and bill collectors. Loves Park Legal Clinic represents clients in Chapter 7 and Chapter 13 bankruptcy cases.
The majority of clients facing unmanageable amounts of debt are in this situation due to uninsured medical expenses, unemployment, illness, injury or disability, divorce or separation, or a failed business enterprise.
If you would like to discuss your bankruptcy concerns with us, call
for a FREE
consultation. We can file a Chapter 7 or a Chapter 13 wage earner plan.
Learn More About Chapter 7
The most common type of bankruptcy is Chapter 7. In these cases, a Chapter 7 trustee evaluates whether the debtor has any non-exempt assets which could be liquidated to pay the creditors' claims.
Debtors are allowed to retain certain "exempt assets," including clothing, household goods, retirement funds, and specified amounts of equity in a homestead or motor vehicle.
Usually, the Bankruptcy Court enters a discharge order which discharges the debtor's debts within approximately 3 ½ months after the case is filed.
Learn More About Chapter 13
Chapter 13 bankruptcy cases are those in which the debtor proposes a Chapter 13 plan to repay all or a portion of his debts over 3 to 5 years.
If the Chapter 13 plan meets all the requirements of the Bankruptcy Code, the Bankruptcy Court will confirm the plan.
After the debtor has completed all payments under the Chapter 13 plan, the Court will enter a discharge order with respect to any remaining debts.
Chapter 13 bankruptcies are used to cure delinquent mortgage payments over the term of the Chapter 13 plan.
You may file a Chapter 13 bankruptcy even if you have filed a Chapter 7 bankruptcy in the last 8 years.
Changes Under the New Bankruptcy Laws
In October 2005, the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005" took effect.
This law has caused concern to consumer advocates who feared it would limit the ability for consumers to get out of overwhelming debt.
Fortunately, it is still possible for consumers with large debt loads to discharge their debts, including credit card debts, in either Chapter 7 or Chapter 13 bankruptcy.
The law, unfortunately, makes filing bankruptcy more complicated and expensive.
Get In-Office Consultations
Our office is conveniently located across from the Loves Park Police Department. We serve clients in Loves Park, Rockford, Machesney Park, Rockton, Roscoe, Belvidere, and Winnebago County. Call
to schedule your FREE
initial in-office consultation today!