Is Debt Taking Over Your Life?
Paychecks shrinking because of a wage garnishment. A foreclosure notice in the mailbox. Creditors calling at work and at dinner. If this sounds familiar, you are not alone, and you have options under federal bankruptcy law.
How Bankruptcy May Help
When you file for bankruptcy, a court order called the automatic stay generally takes effect right away. In most cases it requires creditors to pause collection activity, including many wage garnishments, foreclosure proceedings, lawsuits, and collection calls. Some debts and situations are exceptions, so it’s important to review your circumstances with an attorney.
Chapter 7 or Chapter 13?
- Chapter 7 may let eligible individuals discharge many unsecured debts, such as credit card balances and medical bills, often within a few months. Eligibility depends on income and other factors.
- Chapter 13 sets up a court-approved repayment plan, usually lasting three to five years. It may allow you to catch up on missed mortgage or car payments over time, which can help you keep your home or car.
Every situation is different. We’ll walk through your income, debts, and goals with you and explain which option, if any, fits your situation.
Take the First Step Toward a Fresh Start
Wator & Associates, P.C. represents individuals and families across Chicagoland in Chapter 7 and Chapter 13 bankruptcy. Call our office at 773.407.2100 to talk with our team.
This post is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Results depend on the facts of each case.
Wator & Associates, P.C. is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.