Bankruptcy is a legal tool that has helped millions of individuals and businesses eliminate or repay some or all of their debts under protection of the law. If you are faced with debt from credit cards, medical bills or other sources, and you have considered filing for bankruptcy, it is important to understand the process. At the Law Office of Ernest B. Fenton P.C., in Cook County, we educate our clients about how bankruptcy works and help them to make informed decisions.
Our lawyers assist individuals and small businesses through Chapter 7, Chapter 13 and Chapter 11 bankruptcies in Illinois. To learn more information, contact our firm at 708-365-8624 or toll free at 800-416-9387 to schedule an initial consultation.
Differences Between Chapter 7 and Chapter 13 Bankruptcy
In a Chapter 7 bankruptcy, debt is completely eliminated. After new bankruptcy laws were passed in 2005, it became a requirement for individuals to pass a means test — based upon income — in order to qualify for Chapter 7.
In a Chapter 13 bankruptcy, a debt repayment plan will be created to allow you to pay off your debts over a period of three to five years. At the end of this period, any remaining debts will be discharged. While there is no means test in Chapter 13, there are still requirements that need to be met in order to file for bankruptcy and you may not be able to discharge certain types of debt in this method.
Under both forms of bankruptcy, an automatic stay is created that will halt any pending foreclosure, stop wage garnishments and repossession and prevent any creditors or collection agencies from contacting you directly. Cook County bankruptcy attorney Ernest B. Fenton can help you understand which form of bankruptcy is right for you and guide you through the process.
Contact an Orland Park Consumer Debt Attorney
For more information about bankruptcy protection at the Law Office of Ernest B. Fenton P.C., send our firm an e-mail or call us at 708-365-8624 or toll free at 800-416-9387 to schedule an initial consultation.
