Chicago Bankruptcy Lawyers

Chapter 7 Bankruptcy ∙ Chapter 13 Bankruptcy

Put a stop to foreclosures, creditor harassment, pending debt litigation, and overdue bills piling up. Speaking with an experienced bankruptcy attorney could provide you with peace of mind. At the Katz Law Office, in Chicago, Illinois, we provide bankruptcy relief services to clients in Cook County and surrounding areas.

Hablamos Español. We offer experienced legal advice in language you understand.

Contact our bankruptcy law attorneys at Katz Law Office to schedule a free initial consultation.

Chapter 7 Bankruptcy - Get a Fresh Start

Under Chapter 7 of the Bankruptcy Code, debtors can discharge liability from much of their debt (meaning they are no longer responsible for paying the debt). Although not all debts can be discharged, Chapter 7 bankruptcy enables people to get a fresh start by discharging a significant amount of debt.

• Credit card debt
• Medical bills
• Signature loans (unsecured loans)
• Other personal debts

Chapter 7 bankruptcy is known to many people as bankruptcy liquidation. That is because a bankruptcy trustee will sell many of your assets in order to pay some of your debts off. However, bankruptcy laws allow you to keep up to $4000 of assets in a Chapter 7 personal bankruptcy. Debtors cannot seek Chapter 7 bankruptcy relief again within eight years.

Since 2005, bankruptcy laws have become tougher on individuals filing for bankruptcy. Individuals must pass a means test to determine if they are eligible for Chapter 7 bankruptcy. If the individual's income or assets are above the median level (as determined in the means test) the individual will be ineligible for Chapter 7 bankruptcy. However, Chapter 13 bankruptcy relief is still an option.

Chapter 13 Bankruptcy - Reorganize Debt; Regain Control

Chapter 13 bankruptcy allows individuals to get a sense of debt relief, without having to suffer the impact of selling off most of their property. Under Chapter 13 of the Bankruptcy Code, the overall debt amount is reduced by a percentage and remaining debt is consolidated into a five year repayment plan.

One benefit of Chapter 13 bankruptcy is that it allows debtors the opportunity to get back into control of their finances without having to personally deal with overbearing creditors. One manageable monthly payment is made to a bankruptcy trustee who will disburse payment to creditors. Over time, you can regain control of your mortgage, monthly bills, and other finances.

The new bankruptcy laws passed in 2005 impose a requirement for debtors to take a credit counseling course prior to filing for bankruptcy. However, this course is usually available over the phone or Internet.

Contact an Illinois Bankruptcy Attorney

Contact the bankruptcy lawyers at the Katz Law Office in Chicago to take advantage of a free initial consultation. We are conveniently located on Cermak Road at Western Avenue, just 2 blocks south of the Western Avenue CTA Pink Line "El" stop.

Hablamos Español - Our Chicago lawyers speak fluent Spanish and can guide you throughout the legal process in plain language that you can understand.