Personal Bankruptcy Lawyers in Illinois & Wisconsin

Chapter 7 for Individuals

If you want to wipe out all their debts immediately, Chapter 7 bankruptcy will do this for you. But Chapter 7 is not available to everyone. You have to qualify.

People with lower incomes will qualify. People with debts that are business debts might qualify even if they have higher income. But you won’t want to file a Chapter 7 case if you have assets that you would lose in bankruptcy, like equity in your house or a valuable personal property.

Fortunately, your retirement plans will almost always be safe in Chapter 7 bankruptcy. Fees for Chapter 7 cases vary depending on the complexity of the case.

Here are the Chapter 7 bankruptcy basics provided by the United States Courts.

Chapter 13 for Individuals

If you have relatively high income or assets that you might lose in a Chapter 7 bankruptcy, you might consider Chapter 13 bankruptcy. This lets you pay your debts off over a period of 5 years if you have higher income or 3 years if you have lower income.

A real advantage of Chapter 13 bankruptcy is that you don’t pay interest on your credit card debts. However, you can’t change the terms of a mortgage on your home. The good news is that you do have the chance to catch up with any late payments over the term of your plan.

For most chapter 13 cases, there is a $4,500 flat fee. There are debt limits for Chapter 13. People with debts over the Chapter 13 debt limit may also consider filing under Chapter 11.

Here are the Chapter 13 bankruptcy basics provided by the United States Courts.

Chapter 11 for Individuals

Most people think that Chapter 11 bankruptcy is for big businesses. But for the past 30 years of more, Chapter 11 has been available to help people with big debts and big problems resolve them.

We represented a person who owned a restaurant business devastated by the COVID-19 pandemic. He had personally guaranteed all the business debt–millions of dollars. But we confirmed a plan that allowed him to pay off his personal liability with one quarterly payment equal to his disposable income over a period of 5 years. All creditors who voted accepted the plan. The plan was binding on the creditors that did not vote and would have been binding even if some of the creditors did not vote for the plan.

This is complex. And it can be expensive. But it surely beats the alternative of losing everything.

Here are the Chapter 11 bankruptcy basics provided by the United States Courts.