What is chapter 13 bankruptcy and how to fix it


Bankruptcy is never easy. On such hard days, when, inflation eats your money and people fail to sustain your business due to low solvency, this unpleasing experience is unknown for fewer and fewer people. However, chapter 13 bankruptcy Illinois is making it a bit less a disaster for people!

1. What is it exactly

 Chapter 13 bankruptcy in Illinois is what we know as the plan for wage earners. Most of us have massive debts taken for either a business boost or personal needs. This plan makes it possible for us, people with a regular, but not incredibly high income, to repay all of our debts. The plan is developed to be executed in the period three to five years. 
 If your income seems to be less than the median in Illinois, then the terms shall be about repayment in three years. In some special cases, the court may have the word to decide and extend the period a little. We call this extension ‘for cause’. However, if your income is higher than the median in the state, the plan is created, provided, and therefore followed for five years.  Something to keep in mind is that there might be an extension of payment deadlines in special cases, but repayments shall never be given more than five years for execution. 

2. Why do I have to apply for repayment due Chapter 13

 The biggest advantage of this text is that admission and attaching yourself to the plan is a guarantee for three to five years for your assets to be safe. In the time, when the plan is due, the law simply does not allow creditors to start or continue any collection procedures. Also, it is not to forget that anybody who is also in charge of your debt is safe from such procedures. To wrap it up, everything related in any possible way ‘freezes’ and all you have to do is follow the plan, so when the situation ‘melts’ you are all good.

3. What documents do I need to file

 When we ever think of any administrative procedure, we always tend to panic as it will be a moment of chaos and panic.  However, although a massive load of work, here are four small sections to divide it into:

  • All your creditors and their claims
  • Your amount of income, where it comes from, and how often it comes
  • A list of all your assets, and do not forget that every single thing that you have is an asset
  • A list of all your expenses, starting with rent, medical care, taxes, and transport and following with your day-to-day expenses such as food, clothes, etc.

 Chapter 13 is created with the thought of people and their tough moments. This is why it works so well with the average problem of bankruptcy in Illinois. It is the way out for more and more people.