Aurora Office
1999 West Galena Blvd, Suite B
Aurora, IL 60506

Joliet Office
1020 Essington Road
Joliet, IL 60435

Questions & Answers about Bankruptcy

Will filing for bankruptcy protection stop creditors from calling me or contacting me directly?

Yes, immediately. After we file your bankruptcy, your creditors must not contact you. They may only contact us. In addition, filing for bankruptcy will stop wage garnishments, end most lawsuits, halt repossessions and foreclosures, and potentially even return previously garnished wages or repossessed property to you.

Can I save my home from foreclosure even if I have waited until the day before the foreclosure sale?

Yes. We can stop the foreclosure sale any time before it occurs.

Can I keep my home, car, and other possessions?

Yes. Chapter 13 is designed to reorganize and eliminate your debt without losing your home, car, or other property. However, you must begin paying regular monthly payments on these debts to maintain ownership. Past due balances will be part of the repayment plan determined by the court. You will be giving 3 – 5 years to pay off these past due balances.

What is Chapter 13 Bankruptcy?

Chapter 13 is also known as a "wage earner plan" or a "debt reorganization". Your past due balances are consolidated and you agree to repay them over a period of 3 – 5 years. During this time you continue to make all current payments. Your monthly payment on the past due debts is determined by your income and expenses, often amounting to 10 cents on the dollar.

What is Chapter 7 Bankruptcy?

Chapter 7 is also known as "a fresh start" or "clean slate". Chapter 7 lets you discharge (wipe-out) most unsecured debt, such as credit card balances, medical bills, and even certain taxes. Some debts, such as child support, student loans, and recent taxes cannot be discharged through Chapter 7. Typically, people who file for Chapter 7 have no assets to protect and earn below the median income.

I'm in debt to the IRS. Will filing Chapter 13 help me?

Yes. As we all know, taxes are very complicated. We will review your tax debt with you and help you understand which portion may be dismissed and what portion will be addressed in the bankruptcy.

How will filing for bankruptcy affect my credit score?

Unfortunately, the damage is already done. Once you have any debt that is over 3 months (90 days) past due, a vehicle that has been repossessed, or a home in foreclosure, your credit score has already been damaged. Filing a Chapter 7 or Chapter 13 and successfully meeting all requirements and repayment obligations of the case are the first steps to rebuilding your credit rating.

How soon will I be able to re-establish my credit?

A lot sooner than you might think. Many individuals that file bankruptcy are able to qualify for home mortgages, auto loans, credit cards, shortly after filing. You may simply have to pay a higher interest rate than someone who has unblemished credit.

Am I qualified to file? Who is disqualified from filing under the new laws?

The new Bankruptcy Law was designed to decrease the number of people eligible to file. Therefore, your ability to obtain a discharge is determined by a complex series of calculations that compare how much you owe to how much you earn. It also compares what you earn to the median income for Illinois. As with any law, however, the new bankruptcy statutes are open to interpretation. Just because one attorney has told you that you do not qualify does not mean we will not take your case. Remember, your initial consultation is completely free! There's no obligation – no strings attached.