CHAPTER 13 - FREQUENTLY ASKED QUESTIONS
Read below for frequently asked questions for filing Chapter 13 "Repayment Plan" Bankruptcy. Contact Us for additional questions or to speak with one of our bankruptcy attorneys today.
Will bankruptcy stop a foreclosure?
Yes, a bankruptcy can stop a foreclosure. The bankruptcy can be used to give you up to five (5) years to pay off the delinquent amounts.
Can I use bankruptcy to catch up on my house or car payments? Yes, if you are behind on secured loan payments, you can use bankruptcy to catch up on delinquent payments on houses, cars, jewelry, or personal property loans. These catch up payments can be divided into as many as 60 monthly installments. Sometimes with no interest, late charges, or add on fees. Also, this process stops all collection activity and all lawsuits.
We have our house paid for but our other debts are out of control. We are being sued and my wages are being garnished. Can I take bankruptcy and still keep my house?
Yes, as you know, creditors who get judgments can use those judgments to take your home, wages, and other assets. Bankruptcy can be used to stop the creditors while you reorganize your finances in order to keep your home.
I was uninsured and in an automobile accident. Now the Secretary of State has taken my license. Can I get it back through bankruptcy?
Yes, the Illinois Secretary of State will reinstate a suspended drivers license after a bankruptcy filing which lists the financial obligations to the injured parties and the insurance company.
I own a car worth $3,000 but I owe over $10,000 on the car. Can I use bankruptcy to keep the car and pay only what it is worth?
Yes, in most cases bankruptcy can be used to allow you to keep the car and pay the acutal value of the car. The rest of the debt becomes unsecured and may be discharged or eliminated in the bankruptcy.
I gave a finance company a list of my personal property and pledged it to get a loan. If I take bankruptcy can I keep my furniture, television, etc.?
Yes, unless you used the money you borrowed to buy the item pledged, you can take bankruptcy on the finance company loan and still keep exempt items you pledged as security for the loan.
Can bankruptcy stop wage garnishments or wage assignments?
The filing of bankruptcy stops the collection of monies through wage garnishments or wage assignments. In fact, if you have given a voluntary wage assignment, you can revoke the wage assignment without filing a bankruptcy.
Can bankruptcy stop the I.R.S. or the Illinois Department of Revenue from collecting?
Yes, bankruptcy stops all collection activity, including collections by the I.R.S. and the Illinois Department of Revenue. In fact, under certain circumstances, interest and penalties may be waved and old tax debts may be discharged or eliminated in bankruptcy.
I did a Chapter 7 bankruptcy last year. Now I have a major medical problem with huge bills. How long do I have to wait to file another bankruptcy?
You can file another type of bankruptcy, a Chapter 13. You can only file a Chapter 7 bankruptcy once every eight (8) years, but you can file a Chapter 13 bankruptcy at any time subject to a few basic rules.
I make over $150,000 per year but because of bad investments, back taxes, and a divorce, I am in real financial trouble. Can I take bankruptcy even though I make a lot of money?
Yes, high income does not mean you can not take bankruptcy, you probably will have to do a Chapter 13 bankruptcy because of your high income, but you still get all of the protections afforded to someone who takes bankruptcy.