Debt Relief Solutions
The Law Office of Timothy Brown provides debt relief solutions that are tailored to each individual's unique situation. In many cases, individuals can completely eliminate their debt. In other cases, individuals can become debt free through a structured repayment plan.
Chapter 7 Bankruptcy
Individuals filing for Chapter 7 bankruptcy obtain debt relief by having certain debts eliminated through the a court-ordered discharge. Through this process, individuals can eliminate unsecured debt, such as credit cards, personal loans, medical bills and utility bills.
In order to file for Chapter 7 bankruptcy, the individual must meet certain income requirements. In most cases, individual are able to discharge their debt without paying anything to their creditors. In some cases, though, the individual is required to surrender non-exempt assets for the benefit of the creditors.
Chapter 13 Bankruptcy
Individuals filing for Chapter 13 bankruptcy obtain debt relief by paying their debt through a Chapter 13 repayment plan. In Chapter 13, individuals can protect their assets from their creditors, such as their house, car, savings, and other assets.
In some instances, the individual in a Chapter 13 is able to discharge some of their debt. Individuals who have missed mortgage payments or car loan payments are often able to catch-up on their loans through their Chapter 13 plan.
Bankruptcy Stops Creditors from Collecting on the Debt
When a bankruptcy case is filed, the creditors must immediately stop all collections. This protection applies at all stages of the collection process, even if a home foreclosure or vehicle repossession is imminent. Bankruptcy stops the following types of collection actions:
- repossession of a car
- foreclosure of a home
- utility shut-off
- collection lawsuits
- collection phone calls
In a Chapter 7 case, the individual is permitted to keep all assets, unless the value of the assets exceed the available exemptions. If the case is filed in Illinois, normally the Illinois statutory exemptions determine the asset value limitations. Click here to learn more about Illinois exemptions
In a Chapter 13 case, the individual is permitted to keep their assets. In many cases, the individual chooses to file Chapter 13 bankruptcy to protect valuable assets that would otherwise be subject to liquidation in a Chapter 7 case.
Bankruptcy and Your Credit
Bankruptcy, in most cases, does not destroy the individual's credit. It's true that the individual's credit score will drop as soon as a bankruptcy case is filed. But after the case has concluded, most individuals realize a credit score increase, within a relatively short period of time. We always provide tips and recommendations for rebuilding credit at the conclusion of each case.