If debt is something that you struggle with, you may be able to end your debt problem through the help of either Chapter 7 or Chapter 13 bankruptcy. This is according to Buffalo Grove bankruptcy attorney David Siegel. Bankruptcy is a federal right that stems from the Constitution. Congress has the authority to make laws regarding bankruptcy. For most people, relief comes in the form of a Chapter 7 fresh start bankruptcy case. That is where a debtor eliminates most unsecured debt and retains whatever property he has. This is true if the debtor’s property does not exceed the state or federal exemptions allowed in his state.
If the debtor does have significant assets, then he still can file Chapter 7, however, any non-exempt property can be used to pay creditors a pro-rata share of the pie. If someone wishes to protect assets from the reach of creditors or the trustee, then he should file a Chapter 13 reorganization case. A Chapter 13 will allow for the repayment of debt over a 3-5 year period of time. The amount paid back through the Chapter 13 plan will be determined primarily by the income and expenses of the debtor. The trustee will verify that the debtor is paying all of his disposable income toward the repayment of debt.
For more information about getting out of debt under either Chapter 7 or Chapter 13 of the bankruptcy code, contact David Siegel at (847) 520-8100. He can set an initial consultation to explore your options. You don’t have to spend another day in debt.