Chapter 13 Personal Bankruptcy Archives

Garnishing wages in a Chapter 13 bankruptcy

If you are behind in making payments on your mortgage, vehicle loans, credit cards, medical expenses or other types of loans, you may have received phone calls, texts and/or emails from creditors. In an attempt to reclaim owed funds or replace missing payments, creditors may take action by garnishing your paycheck. While it may be impossible to retrieve the funds that have already been lost through wage garnishment in Illinois, filing for Chapter 13 bankruptcy may help to protect you from losing more money. At Ledford, Wu and Borges, LLC., we know that having your wages garnished can be overwhelming. You have options when it comes to unfreezing your bank account, having your wages garnished or filing for bankruptcy.

Stop foreclosure with a Chapter 13 bankruptcy

People who fall on hard times in Illinois may find it difficult to keep up with extensive medical bills, credit card debt and other expenses. When homeowners fall too far behind on making their monthly mortgage payments, however, they could run the risk of losing their homes. Not only is it overwhelming to have a home taken away while in the midst of severe debt, but it can be extremely difficult for people to find a new place to live once they have a foreclosure on their record. After a number of mortgage payments are missed, the bank may try to foreclose on the home, or repossess it. While there are several options for people who are worried about losing their home, filing for Chapter 13 offers one possible solution.

Bankruptcy concealment lands Illinois woman in hot water

Whether people in Illinois are filing for Chapter 7 bankruptcy or Chapter 13, they are legally required to put together a complete list of their assets and debts, according to the Illinois Attorney General. Assets include any bank account balances, family heirlooms, real estate, retirement plans, vehicles and expensive furnishings. Debts include bank loans, credit cards, mortgages, child support/alimony obligations and living costs. When people fail to disclose all of their assets, they can find themselves in legal trouble.

Understanding how debts are organized in a chapter 13 bankruptcy

Filing for chapter 13 bankruptcy in Illinois gives you the ability to pay off creditors under more manageable circumstances. At Ledford, Wu & Borges, LLC, our team works with people like you so they can understand their options and know what to expect when filing for bankruptcy. When it comes to chapter 13, you should be aware of how your debts will be organized because if affects how much you will have to pay.

Which debts cannot be discharged in a chapter 13 bankruptcy?

Filing for a chapter 13 bankruptcy in Chicago is particularly advantageous if you are in a position to pay off some of your debts. Through this option, you can work with creditors to develop a plan to pay them in installments. You may be able to save your home from foreclosure, reschedule your secured debts and lower the payments on your outstanding balances.

Use Chapter 13 bankruptcy to stop vehicle repossession

As the Federal Trade Commission points out, both Chapter 7 and Chapter 13 bankruptcy will put a stop to creditors trying to collect on debts. Both can also stop vehicle repossession. It is important for debtors in Illinois to understand how the Chapter 13 process will work when dealing with either the threat of repossession or following the seizure of a vehicle.

Can bankruptcy stop wage garnishment?

It can be frustrating to watch a portion of your income get taken away through wage garnishment. In Illinois, you do have the option of filing for bankruptcy, which can stop the practice. Keep in mind that this only applies to debts that qualify, which does not include items such as child support or alimony payments.

Tips for rebuilding credit after a Chapter 13 bankruptcy

It’s no secret that a bankruptcy filing will remain on an Illinois consumer’s credit report for the better part of a decade. As the Federal Trade Commission points out, a Chapter 13 bankruptcy will typically be on a credit report for seven years though could potentially be there for up to 10 years, causing the score to be significantly lower.

Should you sign a reaffirmation agreement?

If you are planning to file for Chapter 13 bankruptcy protection, you may have heard about reaffirmation agreements. These are statements filed with the bankruptcy court in Illinois that show your commitment to retaining and paying certain debts. However, before you sign any reaffirmation agreement it is important for your attorney and for you to consider your financial situation carefully.

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