Parking tickets must be paid back through a Chapter 13 bankruptcy case because they’re not dischargeable in a Chapter 7 states Oakbrook Terrance bankruptcy attorney. Child support can be reorganized in a Chapter 13 bankruptcy case; however, it must be paid in full. These are the type of debts that a Chapter 7 would not bring a solution or a remedy for. Chapter 13 provides that remedy by allowing the debtor to reorganize and repay those debts over a 36- to 60-month period of time. This time period gives the debtor the ability to go on with his life, stop garnishments, stop harassments, stop bank citations, and be able to repay and reorganize over a period of time. You simply need to find a bankruptcy lawyer to handle your case.
If you’re going to file a Chapter 13 bankruptcy, you want to make sure that you have an experienced Chapter 13 bankruptcy lawyer working on your side. Chapter 13 is much more complicated and much more involved of a bankruptcy case than that of Chapter 7. For that reason, many attorneys who practice bankruptcy law do not file Chapter 13 bankruptcy cases. There are many cheap bankruptcy lawyers who will only do a Chapter 7 bankruptcy case and will refer out a Chapter 13 bankruptcy case to another attorney who handles that particular area. The reason for Chapter 13 being so difficult is there is a ton of math involved in terms of developing the plan payment and filing the proper documentation to ensure the creditors are paid pro rata or at a different hierarchy level than what the code allows.
In the Northern District of Illinois, we use what’s called a model plan. The model plan sets out several things that every attorney must follow. For example, every plan has a certain dollar amount to be paid to the trustee over a certain number of months, and unsecured creditors are projects to receive a certain percentage on the dollar. However, there is a special section called Section G, which allows an Illinois bankruptcy lawyer to modify this model plan in many different ways. One way that the model plan gets amended is that attorneys’ fees can be paid often at a higher level and at a higher hierarchy than what is provided for in the code. If creditors do not object to this, the language in Special Section G will apply and will become the confirmed plan. Special Section G also allows adequate protection payments to be paid at a certain dollar amount and then increased after the case is confirmed. The benefit of doing this is that attorneys’ fees can be paid at a higher rate than auto payments and other types of debts prior to the case being confirmed. Once the case is confirmed, the dollar amount can be increased to a set payment for the auto lender and a set payment and a decreased amount for the Chicago bankruptcy attorney.