How Do I Qualify For Chapter 13 Bankruptcy

Find Lasting Debt Relief with Bankruptcy Assistance

Are you struggling with debt and wondering how to get back on track financially? Filing for bankruptcy may be a viable option, but the entire process is complex and confusing. If you’re asking yourself, “How do I qualify for Chapter 13 bankruptcy in Schaumburg, IL?” you need the help of a Schaumburg bankruptcy attorney.

Cutler & Associates, LTD has been focused on consumer bankruptcy since 1990, and our team’s primary objective is to help debtors find lasting debt relief. Our fees are competitive and reflect the high-quality legal services we provide. Don’t wait any longer to take the first step toward a debt-free future. Contact us today to learn more about how we can assist with your Chapter 13 bankruptcy case!

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a powerful tool that allows individuals and small business owners to reorganize their debts and repay them over a period of three to five years. In Illinois, Chapter 13 bankruptcy is governed by federal law and is filed in the United States Bankruptcy Court for the Northern, Central, or Southern District of Illinois.

Unlike Chapter 7 bankruptcy, which involves the liquidation of assets to pay off debts, Chapter 13 bankruptcy allows debtors to keep their property and create a repayment plan that’s tailored to their specific financial situation. The plan is designed to be affordable and is based on the debtor’s income and expenses.

Through Chapter 13 bankruptcy, debtors can catch up on missed mortgage or car payments and stop foreclosure or repossession proceedings. Additionally, some debts that cannot be discharged in Chapter 7 bankruptcy, such as certain tax debts and domestic support obligations, may be discharged in Chapter 13 bankruptcy.

Navigating Chapter 13 bankruptcy can be a complicated process, and it’s important to seek the guidance of an experienced bankruptcy attorney. Contact us today to learn more about how we can help you reorganize your debts and find lasting debt relief.

How Do I Qualify for Chapter 13 Bankruptcy?

To qualify for Chapter 13 bankruptcy in Illinois, you must meet certain eligibility requirements. Here are the basic requirements:

Types of Debts: Chapter 13 bankruptcy is designed to help individuals with regular income reorganize their debts. Eligible debts include secured debts, such as a mortgage or car loan, and unsecured debts, such as credit card debt or medical bills.
Debt Limitations: To be eligible for Chapter 13 bankruptcy, you must have secured debts of no more than $1,257,850 and unsecured debts of no more than $419,275. These limits are adjusted periodically to reflect changes in the consumer price index.
Sole Proprietorship: If you are a small business owner operating as a sole proprietorship, you may be eligible for Chapter 13 bankruptcy if your debts are within the limits outlined above.

In addition to the basic requirements, there are specific eligibility criteria that apply to Chapter 13 bankruptcy in Illinois:

Residency: To file for Chapter 13 bankruptcy in Illinois, you must have lived in the state for at least 91 days prior to filing.
Income Eligibility: You must have a regular income that is sufficient to fund a repayment plan. Your income must be less than the median income for a household of your size in Illinois, or you must pass a means test to determine your eligibility.
Completion of Credit Counseling: Before filing for Chapter 13 bankruptcy, you must complete a credit counseling course from an approved provider.

It’s worth keeping in mind that the criteria for eligibility can differ depending on your specific financial circumstances. Seeking advice from a bankruptcy attorney based in Schaumburg, Chicago, could prove to be a wise choice if you want to determine whether Chapter 13 bankruptcy is the best course of action for your situation.

What Can Chapter 13 Bankruptcy Do?

These are some things that Chapter 13 bankruptcy can do:

Stop Foreclosure: If you are behind on your mortgage payments and facing foreclosure, filing for Chapter 13 bankruptcy can help you stop the foreclosure process and catch up on your missed payments over time.
Stop Wage Garnishments: If you are having your wages garnished to pay off a debt, filing for Chapter 13 bankruptcy can stop the wage garnishment and allow you to pay off the debt over time.
Consolidate Debts: Chapter 13 bankruptcy allows you to consolidate your debts into one manageable monthly payment.
Protect Co-Signers: Chapter 13 bankruptcy can provide some protection for co-signers, but it ultimately depends on the specific circumstances of the case.
Reduce or Eliminate Certain Debts: Chapter 13 bankruptcy can reduce or eliminate certain debts, such as credit card debt or medical bills.
Provide a Fresh Start: Once you complete your Chapter 13 bankruptcy repayment plan, you can receive a fresh start and move forward with a more manageable financial situation.

What Chapter 13 Bankruptcy Cannot Do

While Chapter 13 can help individuals manage their debts and avoid foreclosure or repossession, there are some limitations to what it can do. Here are some things that Chapter 13 bankruptcy cannot do:

Discharge All Types of Debt: Chapter 13 cannot discharge certain types of debt, such as most tax debts, student loans, and debts arising from fraud or willful and malicious conduct.
Eliminate Liens on Secured Debts: Chapter 13 cannot eliminate liens on secured debts, such as mortgages or car loans, but it may allow the debtor to pay these debts over time through the repayment plan.
Stop Certain Types of Legal Actions: Chapter 13 cannot stop certain types of legal actions, such as criminal proceedings or certain types of lawsuits.
Immediately Improve Credit: Filing for Chapter 13 will not immediately improve the debtor’s credit score, but it may allow them to start rebuilding their credit over time.
Guarantee a Successful Repayment Plan: The debtor’s repayment plan may be adjusted or even dismissed if they fail to make their payments on time or if their financial circumstances change.

Why Do I Need a Schaumburg Bankruptcy Attorney?

Bankruptcy law is complex and difficult to navigate without the help of an experienced attorney. It’s essential to work with a bankruptcy attorney who has the skills and knowledge needed to help you secure your financial future. Here are some key characteristics to consider when selecting a bankruptcy attorney:

Excellent Educational Background – When choosing a law firm, it’s important to look beyond their experience in handling bankruptcy cases. Consider their educational background and the university they attended. Look for a lawyer who can provide evidence of graduating from a reputable institution.
Extensive Experience – Look for a bankruptcy attorney who has relevant experience in handling bankruptcy cases, especially complex ones, for consumers in your state. Consider not only the number of years they have been practicing but also the type of experience they have gained.
Compassionate – Financial difficulties are a sensitive matter, and it’s essential to have an attorney who is empathetic and understanding. Choose a bankruptcy attorney who is compassionate and respectful towards their clients.

Cutler & Associates, LTD is the ideal bankruptcy law firm that you’re looking for. We have been assisting families and individuals in Illinois since 1990 with exceptional educational backgrounds, vast experience, and a caring approach. We offer free consultations to initially discuss your matter with us. Get help now!

Call our Schaumburg Bankruptcy Attorney Now!

If you’re struggling with overwhelming debt, hiring a bankruptcy attorney to determine whether you qualify for Chapter 13 bankruptcy is essential. They can provide you with the knowledge, guidance, representation, and peace of mind that you need to navigate the complex and often perplexing process of Chapter 13 bankruptcy. So, if you’re wondering, “how do I qualify for Chapter 13 bankruptcy in Schaumburg, IL?”, our bankruptcy attorneys can help.

Cutler & Associates, LTD is the ideal choice you have been seeking. Our team is comprised of highly educated and experienced professionals who offer compassionate care. For more than 30 years, we have helped numerous families and individuals in Illinois. By selecting our law firm, you can rest assured that you will receive top-notch legal services. We specialize in both Chapter 13 and Chapter 7 bankruptcy, and can guide you through the entire process. Don’t wait any longer to seek assistance. Call us now to learn how you can qualify for Chapter 13 bankruptcy in Schaumburg, IL!