Serving Lockport, IL and surrounding communities — Call (815) 838-5297
If you are overwhelmed by debt, bankruptcy may provide a path forward. The two most common options for individuals are Chapter 7 and Chapter 13, but they work differently and the right choice depends on income, assets, and goals.
Inspired Law Group helps clients in Lockport and surrounding communities understand these options and what to expect before filing.
Chapter 7 is often called a “fresh start” bankruptcy. In many cases, it can eliminate eligible unsecured debts such as credit cards or medical bills for people who qualify. Chapter 7 typically moves faster than Chapter 13, but eligibility depends on factors such as income and the means test.
Chapter 13 is a court approved repayment plan. Instead of eliminating debt quickly, it can allow you to pay certain debts over time while receiving protection from collection activity. Chapter 13 may be used to catch up on missed payments, such as a mortgage or vehicle loan, depending on the situation.
Timeline
Chapter 7 is generally shorter, while Chapter 13 involves plan payments over time.
Eligibility and income
Chapter 7 qualification can depend on income and the means test. Chapter 13 may be an option when Chapter 7 is not.
Assets and payments
In both chapters, exemptions and asset details matter. Chapter 13 may allow more structured solutions when payments need to be caught up.
Goals
Chapter 7 may be focused on discharging eligible debt. Chapter 13 may be focused on creating a plan to manage debt and protect property.
A bankruptcy consultation is more productive when you have:
Recent pay stubs
Recent tax returns
A list of debts and creditors
Basic information about assets and monthly expenses
Bankruptcy is a legal process with strict rules and deadlines. A consultation can help you understand which chapter may fit your situation, what risks to watch for, and what to expect next.
If you are considering Chapter 7 or Chapter 13 bankruptcy, Inspired Law Group can help you understand your options and move forward with a plan.
Contact Inspired Law Group to schedule a consultation with Attorney Jeff McCarthy.
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