Filing For Chapter 13 Bankruptcy
Consumers with excessive debts may face further difficulties if they do not take legal action. Among these hardships is foreclosure. This could cause significant difficulties for individuals operating a small business from home. In order for the consumer to avoid this action when it isn’t possible to acquire a loan modification is to file a bankruptcy claim. If you wish to explore your options, you should contact a Business Bankruptcy Attorney in Berwyn IL today.
Filing for Chapter 13
The initial step for filing chapter 13 is to establish that you have an eligible income level. In the Berwyn area, the median income is $48,874. This implies that any claimant who wishes to file chapter 13 has an income that is more than this value. If the consumer doesn’t possess this income level, they are eligible to file for chapter 7 only.
What are the Benefits
If you’re eligible for chapter 13, you’ll acquire an automatic stay, which prevents the mortgage lender from initiating foreclosure. This action lasts until the case is discharged, which is a period of no more than five years. This allows the consumer to catch up any delinquent payments and late fees, which warrant a foreclosure in the future and could prevent them from acquiring another property for at least ten years.
Discharging Your Debts
Additionally, the payment plan allows the consumer to submit smaller payments to their creditors and settle these debts amicably. In some cases, this could eliminate select debts such as unsecured credit card accounts. Judges often discharge these debts through bankruptcy, which deems the consumer no longer responsible for them. However, if the bankruptcy case is discharged early for any violation of the terms, the liability for these debts is reestablished.
Bankruptcy is a viable option for settling debts. It does come with repercussions. It may also reduce the value of expendable income for the consumer for an extended period of time. However, once the process is complete, they are debt free in most cases. If you wish to review these opportunities for a debt-free lifestyle, you should contact a Business Bankruptcy Attorney in Berwyn IL by visiting today.