The Many Reasons You Should File for Chapter 13 Bankruptcy

by | Apr 28, 2014 | Bankruptcy Law

There are many reasons why you should file for a Chapter 13 bankruptcy. This type of bankruptcy can put an end to all kinds of torment you may be subjected to by creditors that harass you at work, or try to put liens against your assets. In order to protect yourself and your family, you need to hire a professional bankruptcy attorney with years of experience. There is more to filing Chapter 13 bankruptcy, and they can inform you of your legal rights regarding the bankruptcy process. Residents of Northeastern Illinois that are ready to file Chapter 13 bankruptcy in Schaumburg should seek expert legal advice from a bankruptcy attorney.

Chapter 13 Bankruptcies Can Prevent Repossessions

If your vehicle is about to be repossessed due to being behind on car payments, Chapter 13 can consolidate a car note as well as other debt. Then you will have one monthly payment that is much easier to manage. When you file for Chapter 13 bankruptcy, interest rates can be greatly reduced and end saving you enough money to be able to afford payments and living expenses. Even if your vehicle has already been repossessed, there is the possibility that your auto can be recovered. If this has already happened to you, you must act fast in order to recover your car.

Stop the Sale or Foreclosure of Your Home

When you have fallen behind on your house payments, and the lender is threatening to foreclose on your home, consider filing for Chapter 13 bankruptcy. This type of bankruptcy proceedings can protect your home from sale or foreclosure. Foreclosure is one of the many reasons people find it necessary to file for Chapter 13 bankruptcy too. Chapter 13 forces a mortgage lender to take smaller payments on past due mortgage payments so a home owner can catch up on their payments without losing their home. Usually these payments are arranged over a fixed period of time without a lump sum due up front. In the state of Illinois, if Chapter 13 is filed before the property is sold at an auction; the bankruptcy proceedings force the mortgage lender to cease the foreclosure.

Chapter 13 Allows You to Consolidate Your Debt

Part of the reason people go in debt is due to considerable debt that outweighs the amount of money they are able to earn in wages. Chapter 13 bankruptcies consolidate many debt payments into a single, simple payment. This payment is paid once a month and can include mortgage payments and vehicle payments, as well as unsecured debt. Unsecured debts are any type of medical bills, credit cards, and loans.

Chicago Debt Solutions have expert attorneys that can help you file Chapter 13 Bankruptcy in Schaumburg, IL. Set up an appointment to speak with a skilled and knowledgeable bankruptcy attorney to ease your debt, and get your life back on the right track.

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