The Debt Reorganization Plan
Are you an individual or small business owner who intends to pay down your debt? Do you have a steady income, but just need some breathing room to catch up on payments without incurring late fees and interest? Chapter 13 bankruptcy can significantly reduce your monthly payments while allowing you to protect your property. Speak to an experienced lawyer to determine if this form of debt relief is right for you.
At the Law Offices of Eric James Homa, PC, we help individuals, married couples and small businesses throughout Central Illinois create, and obtain court approval for, debt repayment plans. During a free initial consultation, we will evaluate your financial situation and explain the bankruptcy process, working to help you rebuild your financial life. For low-cost bankruptcy assistance, call 309-673-5297.
What Exactly Is Chapter 13 Bankruptcy?
When you file Chapter 13 bankruptcy, your attorney will work to create and obtain court confirmation of a repayment plan. Essentially, your unsecured debt will be rolled into one monthly payment that you will make to a Chapter 13 trustee over 3–5 years. The trustee will use the money to pay your creditors.
After the specified time period is over, any remaining unsecured debt is discharged. Due to the nature of this bankruptcy reorganization plan, you may pay up to 100 percent of your debt or only a small portion.
What Are the Benefits of Chapter 13 Bankruptcy?
When you file bankruptcy, creditor collection actions, including harassing phone calls and letters, must stop. With the debt reorganization plan, you are allowed to protect all your property, including your home, multiple vehicles and boats. Further, if you have gotten behind on your mortgage or car payments, Chapter 13 bankruptcy stops foreclosure and repossession. This debt reorganization plan also allows you the satisfaction of repaying at least some of your debt, while not accruing late fees and interest.
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Stop Worrying. Take Action.
If you are considering filing bankruptcy and are curious about the difference between Chapter 7 and Chapter 13, we can help. Contact us online to arrange a complimentary consultation with our team.
Our headquarters are in Peoria, Illinois. However, we meet with clients at our office's branches throughout Central Illinois, including Springfield, Bloomington and Galesburg. If you are unable to come to us, we will meet with you in another location.
