Chapter 13 Bankruptcy Not a Free Pass
Despite some popular public misconceptions, filing for Chapter 13 Bankruptcy is not a free pass for financially burdened individuals by any stretch of the imagination. Often, pundits make it sound as though those who file for bankruptcy are somehow lazy, financially irresponsible, or looking to get a free ride.
However, nothing could be farther from the truth. When you file for Chapter 13 Bankruptcy in the Chicago area, it means the beginning of paying off your debts over a 3-5 year period with whatever disposable income you are earning.
When people file for Chapter 13, they are indicating that they have a debt burden that is bigger than what they can handle on their own. This burden can have accumulated for multiple reasons. While it is true that, in some cases, it is the result of financial irresponsibility on the part of the individual, in most situations, it is the consequence of lengthy hospital stays, the loss of a job, a divorce, or some other unforeseen circumstance.
Chapter 13 requires that all of an individual’s disposable income be directed to creditors over the life of the bankruptcy case. In other words, it is not as though an individual who enters bankruptcy files on one day and is living carefree the next. The disposable income is calculated by looking at an individual’s monthly income and subtracting monthly expenses; the amount left over is automatically given to creditors.
Obviously, this is not a plan that will work for someone who is simply trying to get a free ride or who is looking for an excuse from all financial responsibility. Rather, Chapter 13 Bankruptcy is an option for those who need some assistance in managing their debt, but who are committed to making good on as much of that debt as is feasible while still caring for the needs of their families.
Chapter 13 also helps to simplify things for someone who has gotten in financial trouble. Rather than having to deal with multiple bills from various creditors and the concurrent worries about late payments and penalties, Chapter 13 enables an individual to make one consolidated monthly payment on all secured and unsecured debts. In addition, if the payments are made on time throughout the course of the bankruptcy, the individual is protected from foreclosures, garnishment of wages, repossessions, and any other bill collecting efforts.
If you believe that you would benefit from filing for Chapter 13 bankruptcy or if you just need to find out what financial options are available to you, contact a Chicago area bankruptcy lawyer as soon as possible. Only a bankruptcy lawyer has the expertise and knowledge to look at your particular set of circumstances and help you to develop a sound, manageable plan.
Chapter 13 Bankruptcy Chicago – Chicago Debt Solutions can help you to determine if Chapter 13 Bankruptcy is right for you. A reputable bankruptcy lawyer who specializes in Chapter 13 bankruptcy in Chicago can help you evaluate your unique financial situation and provide sound legal options to get you back on your feet. Contact the experienced and caring professionals at Chicago Debt Solutions. Call 312-445-9106 or visit our website.
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