Answering the Frequently Asked Questions
At the law firm of Burns & Wincek, our attorneys have more than 25 years of combined bankruptcy experience offering outstanding service at an affordable price to people in Chicago, Waukegan and the rest of Northern Illinois.
We know the questions that people have regarding bankruptcy. We have the answers. Below, you will find a bankruptcy FAQ that addresses many of the common questions.
After you have reviewed the FAQ, we encourage you to contact us to get answers to more specific questions from an experienced bankruptcy lawyer.
Q. Can I still file for bankruptcy?
A. Yes! Bankruptcy is still here and still available even after the changes to bankruptcy law that occurred several years ago.
Q. What is Bankruptcy?
A. Bankruptcy is a legal process, and a right guaranteed to you by the United States Constitution, that allows a person who is having problems paying bills to eliminate or reorganize debt. The federal government created this process, so it is handled in federal court.
Q. What can Bankruptcy do for me?
A. Bankruptcy can eliminate your debt and give you a fresh start. Bankruptcy can also help you defend against foreclosure and defend against repossession.
Q What are the different Chapters?
A. There are four Chapters of bankruptcy available to consumers under the Bankruptcy Code:
- Chapter 7 bankruptcy
- Chapter 13 bankruptcy
- Chapter 12 bankruptcy
- Chapter 11 bankruptcy
We are focused on Chapter 7 and Chapter 13, which are designed to help individuals overcome debt. We can also handle Chapter 11, which is designed for businesses or individuals with extremely large debts. Chapter 12 was created specifically for family farmers and fishermen.
Q. What is Chapter 7?
A. A liquidation or elimination of your bills. It is the most common form of bankruptcy filed.
Q. What kinds of bills can I get rid of in a Chapter 7?
A. Unsecured debts like credit cards, medical bills, payday loans, repossessions, judgments, and broken leases.
Q. What kinds of bills can't I get rid of in a Chapter 7?
A. Debts owed to the government like parking tickets, most student loans, most taxes, overpayment of benefits, and debts like back due child support.
Q Can I keep my house and/or my car in a Chapter 7?
A. Yes, as long as they are up to date on your loan and you don't have a lot of equity.
Q. What is Chapter 13?
A. A repayment plan that helps you to reorganize your debt based on your income.
Q Why would I file a Chapter 13 and not a Chapter 7?
A. You typically file a Chapter 13 if
- You are behind on a house or a car and you want to keep it;
- You recently filed a Chapter 7 and can't file another one;
- You are making too much money to file a Chapter 7;
- You have some kind of property that would not be protected in a Chapter 7
Our lawyers will take great care to help you determine that path that makes the most sense in your situation.
Q. How much will my Chapter 13 payments be?
A. Each Chapter 13 is a unique plan based on your income, your expenses, your bills, the type of bills they are, and several other factors. Each person's payment is different.
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We hope that this FAQ answered some of your bankruptcy questions. For information beyond the scope of this bankruptcy FAQ, call us at 866-626-9031 or send us an e-mail.
