Bankruptcy helps thousands of households across the United States each year. There are different options when it comes to seeking financial relief through bankruptcy, and you should discuss any questions you may have with a bankruptcy lawyer in Rolling Meadows. Some of those questions may include the following.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is commonly called “straight” or “liquidation” bankruptcy. This type of bankruptcy case involves giving up nonexempt assets and property in exchange for the court discharging your qualified debts. A lawyer can help you apply exemptions so you can hold onto as much property as possible. Chapter 7 bankruptcy can be a relatively quick process, and you may receive a discharge in about six months. Not everyone qualifies for this type of case, and you should discuss your circumstances with your attorney.
What is Chapter 13 Bankruptcy?
Often called the “reorganization” bankruptcy, Chapter 13 bankruptcy is a longer and more complicated process than Chapter 7. The bankruptcy trustee will prioritize your debts and will set a reasonable repayment plan. This means you will need to make monthly payments to the court for three to five years, which will go to priority debts. At the end of your plan, the court can discharge any debts that are leftover.
Can a Bankruptcy Case Help Prevent Foreclosure?
Bankruptcy is not a magic solution when it comes to avoiding foreclosure of your home. However, bankruptcy can provide some benefits that can work in a homeowner’s favor, including the automatic stay and a Chapter 13 payment plan, which can address your mortgage arrears.
Discuss Your Options with a Bankruptcy Lawyer in Rolling Meadows
The law firm of Charles T. Newland & Associates guides clients through the bankruptcy process, and we can help you determine whether bankruptcy is the right form of debt relief for you. Call 847.797.9300 or contact us online for free today.