A seasoned chapter 13 lawyer Peoria IL residents trust knows that in order to file for bankruptcy, you are required to file under the chapter which is most appropriate for your financial situation. If you have been struggling under a mountain of debt, you may want to consider contacting a bankruptcy attorney to discover your legal options.
At Smith & Weer, P.C., we specialize in debt relief and consumer protection and can help you obtain a fresh financial start. The Peoria chapter 13 lawyer at our firm has assisted a wide variety of clients and is available to offer you the best legal solution based on your circumstances.
What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcies?
A skilled chapter 13 lawyer Peoria IL clients recommend can review your financial state to determine if you qualify for chapter 13 bankruptcy instead of chapter 7.
In a chapter 7 bankruptcy, all of your nonexempt assets are sold or liquidated by the bankruptcy trustee that is appointed to oversee your bankruptcy. The funds from this liquidation are used to pay your creditors to reduce as much of your debt as possible. Chapter 7 is sometimes referred to as an asset-based bankruptcy.
A chapter 13 bankruptcy is different in that it is a reorganization of your debt based on your income, not your assets. It is sometimes referred to as an income-based bankruptcy because of the way creditors are repaid. A chapter 13 lawyer Peoria IL offers knows that the bankruptcy court will consider your total income and from that deduct living expenses plus a reasonable allowance. It will then determine the amount creditors will be paid based on the balance of your income.
The Bankruptcy Process
According to the U.S. Bankruptcy Code, there are many assets you are able to keep in a chapter 13 bankruptcy filing. These assets include your homestead, personal vehicle, personal property, job-related equipment, and income. There are certain criteria associated with each of these assets. Your bankruptcy attorney can explain in detail what those criteria are and how they may apply to your individual situation.
The repayment plans are set up for a three-to-five year period. At the end of this period, whatever balance is still owed to any creditors is deemed paid in full and you now have no remaining debt. Keep in mind, however, this only applies to unsecured debt such as credit cards or utility bills. It does not apply to secured debt, such as a home or vehicle.
Contact a Chapter 13 Lawyer Peoria IL That Clients Trust
If you are struggling with overwhelming debt, contact a chapter 13 lawyer in Peoria IL today. The legal team at Smith & Weer, P.C. can meet with you and conduct a meticulous examination of your financial situation. Following that, your attorney can discuss all of your debt relief options, both for bankruptcy and alternative solutions.
Contact a professional chapter 13 lawyer Peoria IL residents count on at Smith & Weer, P.C. by calling 309-694-6700, or if you prefer, fill out a contact form on our website.