Emergency Chapter 13 Filing in Chicago
Need to stop foreclosure or repossession now?
Are you presently struggling with overwhelming debt you simply can't afford to pay? Is your home at risk of going into foreclosure or are you at risk of losing your vehicle to repossession? Having a roof over your head and a car to drive to and from work, and to take your children to school or the doctor are not luxury items; these are necessities!
At Law Offices of David Freydin, we find that a large percentage of our clients do their very best to repair a situation when they're having financial problems. Some people try to get a second mortgage, and others use their credit cards, while others borrow from friends and family members. Unfortunately, when an underwater mortgage is siphoning your funds, or when another negative situation such as having to get a lower paying job after a lay off is straining your cash flow, these quick fixes only last so long and it's only a matter of time before you're right back at square one and with a negative cash flow.
When money's tight people learn quickly to separate the needs from the wants, and they learn to live on less than they did before. When a negative financial situation impacts a debtor, the debtor often has to start cutting back on luxury items and deciding upon true necessities.
An underwater mortgage or a cut in pay may cause you to cancel that Hawaiian vacation, but you need your home to live in and to provide shelter for your family. If you're in dire financial straits and about to lose your home to foreclosure and your car to repossession, what can you do to stop foreclosure and repossession and keep your home and your car?
Your Answer: Filing a Chapter 13 Bankruptcy
The Chapter 13 bankruptcy is for wage earners; therefore, those who aren't employed won't be able to qualify since Chapter 13 involves a repayment plan. It allows individuals with a regular income to create a plan to pay off all their debts. With a Chapter 13, the debtor (with the help of an attorney) proposes a repayment plan to make monthly installments over a period of 3 to 5 years. How it works: if the debtor's monthly income is below the state's median, they will have to be put on a plan for 3 years unless the court approves a longer repayment plan. If the debtor earns more than the state's income, then they will have to go on a 5 year repayment plan.
There is one major advantage of this type of bankruptcy versus a
Chapter 7: most significantly that Chapter 13 enables debtors to save their homes from foreclosure and their cars from repossession. By filing a Chapter 13, debtors can stop their foreclosure proceedings, thus allowing them to cure their delinquent mortgage payments over time. However, they still make all of their mortgage payments during the life of the repayment plan.
What's more, the Chapter 13 also allows debtors to reschedule their secured debts and extend those over the life of the Chapter 13 repayment plan. In essence, the Chapter 13 acts as a debt consolidation loan where they make payments to the Chapter 13 trustee who then distributes those payments to the creditors. There is no direct contact between the debtor and the creditors while they are under Chapter 13 protection. Additionally, with a Chapter 13, the debtor pays off all or merely a portion of their debt; how much they pay all depends on their income and their debt load. Chapter 13 repayment plans are structured in such a way so the debtor can comfortably afford their monthly payments.
If you are currently employed and have a regular source of income but are facing repossession of your vehicle or foreclosure, or both, please don't hesitate to contact a Chicago bankruptcy attorney from Law Offices of David Freydin As this is an emergency situation, we would be glad to meet with you right away in a free consultation where we can determine if filing a Chapter 13 is right for you.