Is Chapter 13 Right for You?

Are you considering Chapter 13 bankruptcy as a way to deal with your financial challenges? If so, you need to be certain that this is the type of bankruptcy that you want to complete before you have made any legally binding agreements with your creditors.

With any Chapter 13 bankruptcy filing, you will eventually be asked to present a repayment plan to a bankruptcy court judge. This plan outlines how you intend to pay back your debts over a period of three to five years using your current and projected income. Once this plan has been approved by a judge, you must stick to the payments as promised. Any diversion from your payment schedule could result in your bankruptcy protection being cancelled.

The payments will be made to a court-appointed trustee, who will then pay your creditors as promised. Should you become unable to make your payments, it is important to speak with your trustee and a judge immediately as you may be able to convert your Chapter 13 bankruptcy to Chapter 7 under certain circumstances, but you can only do this with the court's approval.

Should you be ready to file for Chapter 13 in Illinois, contact a Chicago Chapter 13 bankruptcy attorney from our law office now to discuss your options, rights, and responsibilities.