Bankruptcy & Debt Relief Practice Areas
Financial difficulties can affect nearly every part of your life. Credit card balances, medical expenses, collection lawsuits, wage garnishment, foreclosure concerns, and other debts can quickly become difficult to manage.
Bankruptcy Attorney Metro Chicago provides information about bankruptcy and debt-relief options for individuals and families throughout the Chicago area. Explore the practice areas below to learn how Chapter 7, Chapter 13, and other legal options may apply to different financial situations.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy may allow qualifying individuals to eliminate certain unsecured debts and obtain a financial fresh start.
Common debts addressed through Chapter 7 may include credit card balances, medical bills, personal loans, and certain collection accounts. Eligibility and the treatment of property depend on income, assets, exemptions, and other circumstances.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy allows eligible individuals with regular income to reorganize certain debts through a court-approved repayment plan, generally lasting three to five years.
Chapter 13 may be considered by individuals who need additional time to address debts, want to protect certain property, or are trying to deal with mortgage arrears and other financial obligations.
Credit Card Debt
High interest rates, fees, and minimum payments can make credit card debt increasingly difficult to manage.
Qualifying credit card balances may be dischargeable through Chapter 7 or addressed through a Chapter 13 repayment plan.
Medical Bills
Unexpected illness, treatment, hospitalization, or other healthcare expenses can result in substantial medical debt.
Medical bills are generally unsecured debts and may qualify for discharge in Chapter 7 or be included in a Chapter 13 repayment plan.
Mortgage & Foreclosure
Falling behind on mortgage payments can put your home at risk of foreclosure.
A bankruptcy filing may temporarily stop certain foreclosure proceedings through the automatic stay. In some circumstances, Chapter 13 may provide an opportunity to address past-due mortgage payments through a repayment plan.
Wage Garnishment
A creditor that obtains a judgment may be able to pursue wage garnishment subject to applicable law.
Filing bankruptcy generally creates an automatic stay that can stop many qualifying garnishments. Whether the underlying debt can ultimately be eliminated depends on the type of debt and circumstances of the case.
Bank Accounts & Property Seizures
Judgment creditors may have options for pursuing bank accounts or other property, subject to applicable exemptions and collection laws.
Bankruptcy may provide protection from certain collection actions and may allow qualifying property to be protected through applicable bankruptcy exemptions.
Debt Collection & Creditor Harassment
Consumers have legal protections against certain abusive, deceptive, and unfair debt collection practices.
If collection calls, letters, lawsuits, or other creditor actions have become overwhelming, you may have options under consumer protection laws or bankruptcy law.
Debt Defense
Receiving a debt collection lawsuit should not be ignored.
Depending on the circumstances, issues may include whether the debt is accurate, whether the creditor has the legal right to collect it, and whether applicable procedures and deadlines have been followed. Bankruptcy may also be worth considering when a collection lawsuit is part of a larger debt problem.
Tax Debt & Bankruptcy
Bankruptcy treatment of tax debt can be complicated. Certain older income tax obligations may potentially qualify for discharge when specific requirements are satisfied, while other tax debts may remain.
The type and age of the tax obligation, filing dates, assessments, liens, and other factors can affect how tax debt is handled.
Student Loans & Bankruptcy
Student loans are generally not automatically discharged through bankruptcy.
In certain circumstances, borrowers may seek discharge through additional bankruptcy procedures and applicable hardship standards. Chapter 13 may also affect how student loan payments are handled while the repayment plan is in effect.
Bankruptcy Exemptions & Keeping Your Property
Filing bankruptcy does not automatically mean losing your home, vehicle, personal belongings, or other property.
Bankruptcy exemptions may protect qualifying property and equity. The protections available depend on the type and value of the property, applicable exemptions, liens, and the bankruptcy chapter filed.
Explore Your Bankruptcy Options
There is no single debt-relief solution that is appropriate for everyone. Your income, debts, property, financial goals, and other circumstances can affect which options are available.
If you are struggling with debt in the Chicago area, consider speaking with a Chicago bankruptcy attorney to learn more about Chapter 7, Chapter 13, debt collection issues, foreclosure, wage garnishment, and other bankruptcy and debt-relief options.
