Bankruptcy Law Firm Mokena

Bankruptcy is a legal process that offers individuals and businesses a way to eliminate or repay their debts under the supervision of a federal bankruptcy court. The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows individuals to discharge most of their unsecured debts, such as credit card debt and medical bills. In exchange for this discharge, the bankruptcy trustee may sell some of the individual's assets to pay off their debts. However, certain assets, such as a primary residence and personal property, are exempt from sale under state and federal laws.

Chapter 13 bankruptcy, on the other hand, is a reorganization bankruptcy that enables individuals with a regular income to create a repayment plan to pay off their debts over a period of three to five years. This option is ideal for those who have assets they want to keep, such as a home or car, but are currently unable to make payments on those assets. Chapter 13 bankruptcy also allows individuals to catch up on missed mortgage payments and avoid foreclosure.

Both Chapter 7 and Chapter 13 bankruptcy can provide much-needed relief to individuals facing financial difficulties. They offer an opportunity to eliminate or repay debts, stop creditor harassment, and regain control of one's financial situation.

The bankruptcy filing process in Mokena involves several steps, each of which requires the guidance of a knowledgeable bankruptcy attorney. These steps include:

1. Initial Consultation: During the initial consultation, your attorney will review your financial situation, discuss your options, and help you determine whether bankruptcy is the right choice for you.
2. Credit Counseling Course: Before filing for bankruptcy, you must complete a credit counseling course from an approved agency. Your attorney can provide recommendations for approved courses.
3. Preparation of Bankruptcy Petition: Your attorney will prepare and file your bankruptcy petition, which includes detailed information about your income, expenses, assets, and debts.
4. Meeting of Creditors: Approximately 30 days after filing, you will attend a meeting of creditors, where you will answer questions about your bankruptcy petition under oath. Your attorney will be present to guide you through this process.
5. Financial Management Course: After the meeting of creditors, you must complete a financial management course from an approved agency. Your attorney can provide recommendations for approved courses.
6. Discharge or Confirmation: If you have filed for Chapter 7 bankruptcy, your dischargeable debts will be eliminated approximately 60 to 90 days after the meeting of creditors. If you have filed for Chapter 13 bankruptcy, your repayment plan will be confirmed by the court, and you will begin making payments as outlined in the plan.

Having a knowledgeable bankruptcy attorney by your side throughout the bankruptcy filing process is crucial. Your attorney can help you navigate the complexities of the bankruptcy code, ensure that your petition is accurate and complete, and represent you in court, giving you the best possible chance of a successful outcome.