Common Questions about Bankruptcy
By Joseph P. Doyle
May. 6, 2011 11:20a
Making the final decision to file for bankruptcy is one that can weigh heavily on one’s mind. Naturally, it is always best to compare one’s alternatives to bankruptcy to bankruptcy itself. There are a lot of bankruptcy myths floating around that are not based on fact; many of these myths give rise to additional questions, questions that deserve answers. If you would like additional information about Chapter 7 bankruptcy, Chapter 13 bankruptcy or, Chapter 11 bankruptcy, contact a Chicago bankruptcy attorney without delay.
What is Chapter 7 bankruptcy?
Chapter 7 bankruptcy is a debt liquidation bankruptcy, where many unsecured debts can be discharged. The discharge acts as a permanent order to creditors, to refrain from contacting, collecting or any form of collection on discharged debts. However, secured debts with a valid lien such as a vehicle, which could not be included in the bankruptcy, can enforce the lien to recover the property secured by the lien once the “automatic stay” has been lifted.
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is a debt reorganization bankruptcy, which allows debtors to pay off a portion or all of their debts over a 3 to 5 time year period. This bankruptcy especially applies to debtors who wish to keep their home and/or their vehicles. People who file Chapter 13 bankruptcy are required to have a regular, steady source of income coming in that will enable them to make payments spread out over a period of time.
What debt is not included in bankruptcy?
Although most unsecured debt can be included in bankruptcy, child support, alimony, student loans, debts not listed on your bankruptcy petition, mortgages and other liens which are not paid in your bankruptcy, court ordered fines, recent taxes (within 3 years), and victim restitution cannot be included in bankruptcy.
How long will it take for my debts to be discharged?
For Chapter 7, it takes from 3 to 8 months. For Chapter 13, the discharge will not be final until you have met all the requirements of the repayment plan, which is somewhere between 3 and 5 years. For Chapter 11, it can take from less than a year to several years.
Chicago Bankruptcy Lawyer
For more information about bankruptcy, contact a Chicago bankruptcy attorney from the Law Office of Joseph P. Doyle today!
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