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Overview of The Bankruptcy Process

WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE

Chapter 7 or 13 bankruptcy may help.

Chapter 7 is known as the “liquidation Chapter.” It discharges most unsecured debts and gives the debtor a “fresh start”. A Chapter 7 case is often called a “no-asset” case since most debtors that file Chapter 7 have no assets once exemptions are applied.

Chapter 13 is known as the “repayment Chapter” and is designed for individuals with a regular source of income who otherwise does not qualify for, or desire, a Chapter 7 bankruptcy. After completing the “means test,” a payment plan is worked out to repay both secured and unsecured creditors. Often the payments in a Chapter 13 plan are considerably lower than if wages were garnished or regular credit card payments were made. Unsecured debt is frequently repaid at 10 cents on the dollars during a 3-year or 5-year plan.

Call us at (847) 368-0000 for a Free, No Obligation Consultation

Evening and Weekend Appointments available

Need a Fresh Start?

Attorney Karl Magnus is a bankruptcy attorney serving Arlington Heights and the greater Chicago metropolitan area. Magnus Law Firm offers free consultations and low-cost bankruptcy help.