Is a Chapter 13 Bankruptcy Right for Me?

If you have non-exempt assets or real property that you want to keep … if the major source of your financial troubles is a mortgage loan or another type of secured debt … if you are uncomfortable with the idea of completely erasing your debt obligations in a Chapter 7 bankruptcy — then a Chapter 13 bankruptcy may be the best solution for you.

At the Law Office of Ronald D. Cummings, we help people in Will County and the surrounding areas of northeast Illinois navigate their way through the bankruptcy process and achieve meaningful debt relief. More important: We can help you make an informed choice about filing for bankruptcy under Chapter 13 as well. For a free consultation — call or contact our firm today.

“But I Can’t Afford to Repay Everything I Owe … “

A common misconception about Chapter 13 bankruptcy is that it requires you to repay all of your debts in full, over a three- to five-year period. The truth is that a Chapter 13 bankruptcy is really about reorganizing and consolidating your debt into a monthly payment that you make to the trustee — who then distributes that payment to your creditors each month, in order of priority, with some debts being paid in full and others only in part over the life of the plan.

During this time you retain possession of your property and at the end of repayment plan, any remaining balance on debt which was part of the plan is discharged.

How Does It Work?

In a Chapter 13 bankruptcy, you file two documents with the court to start the process. The first is the bankruptcy petition (just as you would in a Chapter 7). The second is your repayment plan, which at a minimum must include enough to pay “priority debts” in full (e.g., child support, recent tax obligations or court-ordered restitution).

Our attorney will work with you to create a plan that fits your budget and that will allow you and your family to maintain a reasonable lifestyle. Once this task is complete and we have filed the petition and the plan with the court — the court will appoint a trustee to review the plan and oversee your case. If the trustee approves the plan, you must begin making the monthly payment amount within 30 days.

Free Bankruptcy Consultations ~ (815) 729-9212

A Chapter 13 bankruptcy can help you reorganize your debts, allow you to keep your home and much more. To learn more — call us for a free consultation with bankruptcy lawyer Ronald D. Cummings.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.