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Choose Us as Your Chapter 7 Bankruptcy Attorney in Peoria, IL
When you file Chapter 7 bankruptcy, the court relieves most of your outstanding debts. Finance company loans, credit card debt, and medical bills usually meet the requirements for Chapter 7 debt relief. You remain responsible for student loans, recent income taxes owed, and outstanding child support. These types of debt are usually not covered by Chapter 7.
A filing under Chapter 11 of the Bankruptcy Code allows a business to continue to operate without creditor pressure – through foreclosure, judgment enforcement, tax levy or other actions – with current management rather than a court appointed trustee in control.
Chapter 11 can be a very flexible tool, whether management is seeking to keep the company going through a reorganization plan or through a sale process as a going concern.
With Chapter 13 you make monthly payments to a court appointed trustee to pay back some or all of your debts over a three to a five year period. The amount of the payment is based on the amount of your income and expenses, and in some cases is as low as $100 per month regardless of the amount of debt that you have. For secured loans like home mortgage or vehicle loans, you have the option to pay these on your own, or you can put the loans into the plan and restructure the payments. Chapter 13 can also stop repossessions or foreclosures by allowing you three to five years to catch up the back payments through the trustee. You also have the option to surrender the property to be relieved of the debt.
Some Questions To Ask:
- Is the business incorporated? If it is incorporated have you or anyone else made personal guarantees or pledged personal assets as collateral?
- Is the business losing money even if there were not long term debts like equipment loans or past due suppliers?
- Is the business falling behind on "trust fund" payments, like employee withholding or sales tax obligations?
An interruption of income such as job loss or illness can quickly cause someone to fall behind in mortgage payments. Due to dropping real estate prices, refinancing or sale of the house may not be an option.
If you have been served with a foreclosure complaint, our firm is here to help. You have options under Illinois state law (such as reinstatement or redemption), but representation by an attorney is advised. Other times, you are unable to save the house and are trying to avoid a money judgment after a bank sale. Our firm can assist you with either option.
Call Us Today!