Chapter 13 is an excellent bankruptcy option if you have a regular source of income. By following a 3-5-year repayment plan, you can catch up on overdue payments and partially or completely pay off your debts. Chapter 13 also allows you to retain secured assets, including your home and business.
You are eligible for Chapter 13 bankruptcy if:
-You are not a business entity
-You have created a debt management plan
-Your unsecured debts are less than $336,900
-Your secured debts are less than $1,010,650
-You have filed your income tax returns
-You haven’t had a bankruptcy case dismissed in the last 180 days
You can use the Illinois Means Test and fill out form b-22C to determine how much of your monthly disposable income will be used to pay your creditors. Remember, Chapter 13 is a repayment plan, and the goal, if possible, is to pay off your debts in full. Bankruptcy court will put you on a 3-year plan if your income is less than the state median. However, you may want to consider filing for Chapter 7 if this is your circumstance. Alternatively, if your income is above the state median, your plan may last the full 5 years.
According to the Department of Justice, the income medians in Illinois are listed as follows:
-The median for a single earner is $49, 741
-The median for a family of two is $63,896
-The median for a family of three is $72,429
-The median for a family of four is $86,921
Hire a Reliable Bankruptcy Lawyer
It’s important to hire an experienced and reliable attorney if you’re planning to file for Chapter 13. At Bach Law Offices, our Northbrook bankruptcy lawyers can create your debt management plan, file your bankruptcy petition, and negotiate with creditors on your behalf.
Contact Bach Law Officesat (847) 448-0025 to schedule your free consultation.