Can You Protect Your Home Through Chapter 13 Bankruptcy?
The threat of foreclosure can weigh heavy over you as a homeowner, especially if you have a family to look after. Despite your best efforts, you could end up overwhelmed with debt and fall behind on mortgage payments. If you are looking to defend against foreclosure, you could consider Chapter 13 bankruptcy to take control of your situation. With the help of an Illinois bankruptcy attorney, you can explore your options to protect your home.
Filing for Chapter 13 bankruptcy is not a simple process by any means. You may be asked plenty of questions in court about your ability to pay back your debts, and you will have to present a repayment plan to satisfy your creditors. At The Thomas Law Office, we can provide you with strong counsel and representation to address your most critical needs.
How Debt Restructuring Can Help You
The difference between Chapter 7 and Chapter 13 bankruptcy comes down to how the debt is addressed. In Chapter 7 bankruptcy, you will have to liquidate non-exempt assets to pay off your debts in the short term. This is in contrast to Chapter 13 bankruptcy, which involves restructuring your debts into a more digestible repayment plan. This allows you to maintain continuity as you keep making mortgage payments.
While you may be able to keep your home in Chapter 7 bankruptcy, it is not always a reliable measure if you have fallen behind on your mortgage payments. At The Thomas Law Office, we can help you pursue Chapter 13 bankruptcy as a way to protect your property, including your home.
Avoiding Foreclosure by Filing for Bankruptcy
When you file for bankruptcy, an immediate stay will be issued against your creditors. This essentially means that nobody can come to collect on your debts while you are in bankruptcy. Chapter 13 bankruptcy may last from three to five years, allowing you to get up to date on your mortgage.
While Chapter 13 bankruptcy can give you breathing room, you still have a responsibility to keep making payments. If you fall behind on your restructured payment plan, you might be at risk of foreclosure again. If you experience any unexpected financial hardship, be sure to meet with an attorney to discuss your options.
Do I Qualify for Chapter 13 Bankruptcy?
In general, Chapter 13 bankruptcy is best suited for people who can make regular payments on time. This is why it is sometimes called "the wage earner’s plan," as it supports people who have stable incomes. Furthermore, if you want to apply for Chapter 13 bankruptcy, your total debts must fall below a certain amount.
At The Thomas Law Office, we can review your eligibility for Chapter 13 bankruptcy. When you work with our firm, you can rest assured that we will pursue a tailored solution for your case.
Contact a Kane County, IL Foreclosure Defense Attorney
If you are facing the possibility of foreclosure, filing for Chapter 13 bankruptcy can provide you with relief. At The Thomas Law Office, we have the legal knowledge to help you through this process. To schedule an initial consultation with a qualified McHenry County, IL bankruptcy lawyer, call our firm at 847-426-7990 today.
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Thomas Law Office has been serving the needs of clients throughout McHenry County and Kane County in cities such as Elgin, South Elgin, Barrington, Carpentersville, Marengo, West Dundee, East Dundee, Algonquin, Lake in the Hills, Huntley, Crystal Lake, Woodstock, Bull Valley, Fox Lake, Fox River Grove, Harvard, Hebron, Holiday Hills, Huntley, Island Lake, Geneva, Wonder Lake and Cary.
