Bankruptcy in Illinois can take away any financial
obligations of paying all or most of pending debts. This form of
assistance is named as a discharge and allows individuals to start over
without the worry of debt.
Bankruptcy can halt mortgage foreclosure and help
those about to lose their mobile homes to keep them. This can help
those who are behind in payments. But bankruptcy does not eliminate
property lines without paying first.
Bankruptcy can help keep a motor vehicle from
being repossessed or help individuals regain repossessed property from
creditors. Bankruptcy can also stop the harassment of debt collectors,
wage garnishments, and other collecting creditors.
It can prevent or restore utility service termination and allow individuals to have creditor claims challenged when fraud has been an issue. In this case some creditors try to obtain more money than what was originally owed. Bankruptcy can assist with this problem.
Chapter Seven bankruptcy is called the liquidation
of debts or straight bankruptcy as it admonished debtors to forego
property under the exemptions limits. The property is then sold through
trustees and the money is used to pay creditors.
Chapter Eleven bankruptcy is called reorganization
and is for business purposes and those who have debts in extremely high
Chapter Twelve bankruptcy helps assist family
Chapter Thirteen bankruptcy is called debt adjustment and helps individuals plan a payment system for repaying debts from a present income.
Most Illinois citizens will file for Chapter Seven bankruptcy or Chapter Thirteen bankruptcy as they are for small corporations, single individuals, and married couples. Chapter Seven bankruptcy can be re-filed six years after a previous filing date, whereas Chapter Thirteen bankruptcy can be re-filed whenever needed. However only certain individuals are eligible for bankruptcy.
Chapter Seven Bankruptcy
Those who have missed mortgage payments or vehicle payments are not advised to file for Chapter Seven bankruptcy because these kinds of property are usually sold.
Chapter Thirteen Bankruptcy
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