BANKRUPTCY

Bankruptcy Legal Representation For All Consumers

  • At CLM Law Group, P.C., we specialize in providing zealous legal services for consumers and small businesses alike. With our focus in bankruptcy law and consumer rights, you know you can trust our team to give you the results you most desire. Call us today for services that include:
Debt Settlement — Bankruptcy Law in Lansing, IL

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the most commonly filed type of personal bankruptcy in the Chicago area. It is also known as Individual Liquidation, Liquidation Bankruptcy, or Straight Bankruptcy. Essentially, all of an individual’s unsecured debts are discharged in a Chapter 7 bankruptcy. The main reason to file Chapter 7 bankruptcy is to discharge debts such as credit card debt, medical debts, auto loans, and mortgage debt. Read more information about this type of bankruptcy or call CLM Law Group, P.C., today.

Given the option of filing either a Chapter 7 or a Chapter 13 bankruptcy, for most people, a Chapter 7 bankruptcy is probably preferable. The reason is simple. A Chapter 7 bankruptcy usually discharges most types of consumer and household debts. Only some specific, non-dischargeable debts such as student loans, child support payments, and certain types of taxes are not covered by Chapter 7 bankruptcy. On the other hand, a Chapter 13 bankruptcy usually requires the repayment of debts within a three-to-five-year period.

Contrary to what people may have believed in the past, you do not have to be wealthy, formerly wealthy, or totally penniless either to file for bankruptcy. It all depends on your ability to meet your financial obligations. Since Chapter 7 bankruptcy is designed for average-income and low-income individuals, the high number of Chapter 7 bankruptcies has led to more restrictions, so qualifying for a Chapter 7 bankruptcy is not as easy as it used to be, contact our bankruptcy lawyers today.

Who Can Qualify For Chapter 7 Bankruptcy?

Not everyone who qualifies for a Chapter 7 bankruptcy should necessarily file for bankruptcy. Bankruptcy is not a full-proof solution to all financial problems, and if it’s not approached with care, caution, and the advice of a good bankruptcy lawyer, a bankruptcy could end up causing you more financial harm than good. Never file for bankruptcy without first having an exhaustive consultation with an experienced bankruptcy lawyer. Eligibility for Chapter 7 bankruptcy is determined by a “means test.” An experienced Chapter 7 bankruptcy lawyer at CLM Law Group, P.C. can examine your financial position and then offer you practical advice regarding the means test, bankruptcy, and your other legal options if bankruptcy isn’t best for you.

The Means Test

Since 2005, the bankruptcy code has required a means test to determine if a bankruptcy candidate meets the basic requirements for a Chapter 7 bankruptcy. The Chapter 7 means test compares your income to the median income earned by workers in your state. The median income varies from one state to another, and generally speaking, almost everyone whose income is below their state’s median can qualify for Chapter 7 bankruptcy. However, if your income is above the state median, you may still qualify if you meet certain conditions. Your lawyer can determine if you meet the criteria for a Chapter 7 bankruptcy, but most high-income individuals will find it difficult to qualify for Chapter 7 bankruptcy under the requirements of the means test.

Chapter 7 bankruptcy is primarily for those individuals who do not have a regular monthly income or whose income is inadequate to pay their debts. If you believe that filing a Chapter 7 bankruptcy may be right for you, get the sound legal counsel you need and speak right away with an experienced Chapter 7 bankruptcy lawyer at CLM Law Group, P.C. Once your eligibility is established, we can guide you through the process of filing a Chapter 7 bankruptcy.

Relief From Harassment

Constant harassment by creditors is not only emotionally taxing but depending on the methods of collection, it could be a real source of embarrassment. Fortunately, when you file for Chapter 7 bankruptcy, an order for relief – called an automatic stay – goes into effect. The automatic stay will prevent creditors from harassing you about debts related to foreclosure, credit cards, repossession, payday loans, medical bills, and many other debts. Also, when you file for Chapter 7, much of the property you own – except for your exemptions – comes under the control of the bankruptcy court. You will not be able to sell or give away any of that property without the consent of the court. At the conclusion of the Chapter 7 process, your debts will be discharged by the court, except for non-dischargeable debts such as child support, tax debts, and student loans.

Contact Our Experienced Chicago Chapter 7 Bankruptcy Lawyers

Since 2005, the Chapter 7 bankruptcy process is longer, more expensive, and undeniably harder. The reason for this is simple: before 2005, the requirements for a Chapter 7 bankruptcy were less precise, and the system was being abused. Moreover, simply qualifying for a Chapter 7 bankruptcy is no guarantee that your bankruptcy petition will be approved. And even if you qualify, a Chapter 7 bankruptcy petition can be rejected if it isn’t properly filed. The law does not require you to be represented by a bankruptcy lawyer, but far too much is at risk to go it alone. If you’re in the Chicago area, and if you’re considering a Chapter 7 bankruptcy or if you need to learn more, speak at once with an experienced Chapter 7 bankruptcy lawyer at CLM Law Group, P.C. Let us help you get a fresh financial start. Contact the CLM Law Group, P.C. today by calling (708) 251-5203.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is also known as a personal reorganization or reorganization bankruptcy. More accurately, it is usually referred to as a Wage Earner’s Plan since it is essentially a tool that allows debtors to implement a practical plan for the repayment of debts. Chapter 13 bankruptcy enables individuals with regular income to repay their debts over a specified period. In the Chicagoland area, if you think Chapter 13 bankruptcy might be right for you, speak right away with an experienced Chapter 13 bankruptcy lawyer at CLM Law Group, P.C.

Chapter 13 bankruptcy consolidates your debts into one monthly payment. The process can help individuals restructure their debts, avoid foreclosures, avoid car repossession, garnishments and manage out-of-control debt. Chapter 13 bankruptcy is appropriate when an individual’s monthly expenses exceed his or her monthly income. It allows someone with a regular monthly income to design a plan to repay all or part of his or her debt.

Advantages Of Chapter 13 Bankruptcy

When you file for Chapter 13 bankruptcy, an order for relief – called an automatic stay – goes into effect. The automatic stay will prevent creditors from harassing you about debts related to foreclosure, credit cards, repossession, payday loans, medical bills, and many other debts. Chapter 13 payment plans range from three to five years based on your income and other circumstances. During the period of your repayment plan and while your bankruptcy’s automatic stay is in place, creditors are forbidden to start or continue collection efforts.

Chapter 13 bankruptcy has several advantages over Chapter 7 bankruptcy. For example, under a Chapter 13 bankruptcy, a family facing foreclosure has an opportunity to save their home. Under the provisions of a Chapter 13 bankruptcy, all debts, including mortgages, are spread out over a period of usually 3 to 5 years – the life of the bankruptcy. The same provisions also apply to other secured debts and allow debtors to reschedule the payment of these debts on terms that take into account their present financial statuses and abilities.

Secondly, filing for Chapter 13 bankruptcy is beneficial in the sense that it offers protection for third parties involved in all the applicant’s debts. This means that co-signatories who signed for loans in conjunction with the debtor are no longer obligated after the bankruptcy filing. Chapter 13 bankruptcy can also be an efficient way of dealing with debt for individuals who may not possess the requisite financial expertise to create their own repayment plan. Under a Chapter 13 bankruptcy, all non-dischargeable debts are put together into what can be described as a consolidated loan. Managing the clearance of this loan over the life of the bankruptcy is a task assigned to a professional trustee. It is the work of the trustee to design a repayment plan, based on your monthly income, to clear this “loan.” Clearing debts and loans through a trustee in this way also has the advantage of saving you from harassment by creditors, since all creditors obtain their payments through the trustee and are barred from directly asking you for payment. The only way creditors can request any direct payment from you during bankruptcy is with a legally-obtained court order.

Eligibility For Chapter 13 Bankruptcy

According to the U.S. bankruptcy code, no person can file for any chapter of bankruptcy unless he or she has received counsel from an accredited bankruptcy counseling agency within the previous 180 days. The only exception to this rule is when a trustee determines that there are no qualified agencies available to the applicant. Additionally, individuals whose bankruptcy applications were dismissed within the previous 180 days for specific reasons, such as a willful failure to respond to a court summons, are also not eligible to apply. Our experienced bankruptcy lawyers can advise you on all of the conditions for bankruptcy eligibility and compliance.

A wide range of factors will not only determine your eligibility for Chapter 13 bankruptcy but will also dictate whether or not your bankruptcy turns out successfully. Nevertheless, a simple mistake like indicating the wrong filing status could delay your bankruptcy or even endanger its approval. Have an experienced bankruptcy lawyer guide you through the entire bankruptcy filing process.

End Your Financial Anxiety with Our Chapter 13 Lawyers

Have you lost sleep over an unmanageable financial situation? Are you counting the days until foreclosure? If so, you may be a good candidate for a Chapter 13 bankruptcy. We will handle your bankruptcy personally; you aren’t shoved over to a paralegal or assistant, and we do not let you become just another case number. The bankruptcy lawyers at CLM Law Group, P.C., maintain high-quality professional standards and provide quality, affordable legal services. Contact our experienced Chicagoland Chapter 13 bankruptcy lawyers today and schedule a free consultation by calling (708) 251-5203.

Turn to Our Legal Team

When it comes to your rights, CLM Law Group, P.C. works hard to ensure you are always treated with fairness and respect. We provide strong and insightful legal representation to help our clients get the results that they are looking for throughout their case. Call us to discuss your needs.
Share by: