Chicago Bankruptcy Attorney and Chapter 13 Bankruptcy Debts

If you and your Chicago bankruptcy attorney determine that a Chapter 13 bankruptcy is the best option for you, you'll quickly learn that that means you will not have all of your debt erased. Rather, you'll be managing a repayment plan for somewhere between three and five years. After your repayment period has ended your remaining qualifying debts will be erased.

Chicago Bankruptcy Attorney Explains Chapter 13 Debt Structure

Ultimately an assigned bankruptcy trustee will be responsible for coordinating your Chapter 13 debt repayment plan but your Chicago bankruptcy attorney will help you evaluate your debt and advice you what debts may be excluded. When the Chapter 13 debt repayment plan is established, certain debts will take precedence over others and must be included and repaid at 100%. Other debts lower on the pecking order may possibly be repaid at a smaller percentage. There are predefined debt priorities that make defining the Chapter 13 repayment plan easier and more predictable.

Chicago Bankruptcy Lawyer Reviews Chapter 13 Debt Priorities

Your Chicago bankruptcy attorney does not set your payment schedule, but with professional knowledge of the bankruptcy debt priorities they can give you a good idea of what the payment plan will look like. Your bankruptcy fees, child support, (most) taxes, employee payments and (most) secured debts will all have to be repaid at 100%. It's the general unsecured debts that offer quite a bit of leeway with payment ranging from between 0 to 100%.

Every case is different and other debts may come into play, questions about these debts can better be answered by your Chicago bankruptcy attorney.