Chapter 13

Skilled Chapter 13 Bankruptcy Lawyers in Belleville, IL

As an experienced Chapter 13 bankruptcy lawyer in Belleville, IL, the law firm of Dixon & Johnston Law Office often finds that Chapter 13 bankruptcy is a better option for our clients than Chapter 7. Sometimes called the wage earner’s plan, Chapter 13 allows you to reorganize your debt and make a plan to pay all or some of it back over the course of three to five years. Chapter 13 may give you a better chance to stop foreclosure and keep your home. Our Chapter 13 lawyers will help you explore your options. If you find that Chapter 13 is best for you, we will walk you through the process. Learn more, and get in touch with us today for a free initial consultation.

What Is Chapter 13 Bankruptcy?

Bankruptcy is a form of debt relief and a legal process for individuals or other entities who are unable to repay their debts to creditors. Chapter 13 is known as a wage-earner bankruptcy and allows you to pay your creditors based on a repayment plan approved by the courts. Your payments will be made for three to five years, depending on your income. You can propose a length of three years if your income falls below the state’s median income level, and a five-year plan often applies if your income is above that level.

How to Qualify for a Chapter 13 Bankruptcy

You need a regular source of income to qualify for Chapter 13 relief. Your unsecured debts must not exceed $419,275, and your secured debts must not exceed $1,257,850. If you do not qualify for Chapter 13, our attorneys can help you determine if Chapter 7 is a better option.

What Debts Are Not Discharged During Chapter 13?

Not all of your debts can be discharged by filing for a Chapter 13 bankruptcy. Under Chapter 13 bankruptcy law, the following debts are not always discharged:

  • Child support, alimony, or other domestic court orders
  • Student loans
  • Income tax debts with some restrictions
  • Certain cash advances
  • Criminal fines and restitution
  • Money, services, property, and more obtained by false pretenses, fraud, or false representation
  • Certain debts owed to a single creditor
  • Personal injury from drunk or intoxicated driving
  • Damages or restitution awarded for personal injury or death caused willfully or maliciously

The Process of a Chapter 13 Bankruptcy

If you elect to file for a Chapter 13 bankruptcy, a trustee is appointed to your bankruptcy estate. They will ensure you abide by plan requirements, and you will make your payments to the Trustee, who will then distribute them to your creditors. You may have the payments made through your employer from your paycheck or elect to pay your Trustee directly. An automatic stay will stop car repossessions, wage garnishments, foreclosures, and civil actions and telephone calls by creditors.  After you complete your plan, your allowable debts will be discharged, even if they only received a small portion of the debt.

Hiring an Experienced Chapter 13 Bankruptcy Lawyer

It can be pretty overwhelming to be in over your head in debt. Don’t assume that you won’t qualify for bankruptcy. If you have a job but are struggling with your bills, contact our law offices. We can discuss your options and tell you more about a Chapter 13 lawyer cost. Don’t delay because you could keep your home or vehicle. The skilled, experienced attorneys at Dixon & Johnston Law Office understand how stressful financial problems can be. We can organize a bankruptcy plan specifically for you and help you get back on your feet financially. We assist clients in Belleville, Southern Illinois, and the Metro East region. Contact us today to schedule your free initial consultation with one of our accomplished attorneys.

**Information is consistent with Illinois bankruptcy regulations. Additional information regarding Chapter 13 bankruptcy for the state of Illinois can be found here.**