When a person thinks of what it must be like to file for bankruptcy, the image of someone who is financially destitute, perhaps living on the street with creditors hot on their heels often comes to mind. Although this may look dramatic on the big screen, in reality, this is rarely the case, and there are people who earn good money that still must file bankruptcy. This person would file Chapter 13 bankruptcy in Carbondale Il.
The recession has affected millions of Americans from being fired from their jobs to being forced to exhaust all of their savings just to make ends meet. Sometimes it can seem like no matter what attempts are made to stay afloat, the water just keeps getting into the boat. The stress can make people ill, can break up marriages and cause depression. Not being able to pay your bills is one of the worst feelings to have. If you find yourself in such a situation, you may have some tough decisions to make. One of those is whether or not to file bankruptcy.
The most common bankruptcy filing is a Chapter 7. This type of filing liquidates your debts to most of the creditors to whom you owe. Some creditors, such as government-backed loans and child support, survive a Chapter 7 bankruptcy.
Not all bankruptcies mean you have to surrender all of your possessions, however. A Chapter 13 bankruptcy in Carbondale, Il can allow you keep those things you hold dear while being able to work out a repayment plan with your creditors. A Chapter 13 bankruptcy is for individuals who can demonstrate that they make money regularly. A trustee appointed by the court to review your assets and income will review your request to make payments on secured debts like mortgage loans and car loans while other, unsecured debts such as credit card bills can be paid off for pennies on the dollar. You will make these payments for 3 to 5 years and once completed, any remaining debt owed will be discharged. The terms of the bankruptcy are determined by your income, whether or not you have any equity in your home and how late you may be on your mortgage and car payments. If the value of your home is less that what you owe, your attorney may be able to strip a second mortgage from the title after the payment plan has been completed. If you are upside down in your car, your attorney may be able to negotiate with the auto lender to set the loan amount to the current vehicle’s value.
The Law Office of Bradley P. Olson provides help and advice about chapter 13 bankruptcy that protect you from home foreclosure, car repossession, wage garnishments and creditor harassment in Carbondale (IL).