When is bankruptcy the right move?
Very few people are comfortable with the idea of filing for bankruptcy. But when job loss, medical bills, family issues or a faltering economy push finances out of control, it may be the most practical way to stop the damage and start over. You may want to talk with us if you are:
- Unable to keep up with monthly bills, or using one card to pay another
- Being harassed by collectors over credit card, personal, medical or tax debt
- Facing a lawsuit, wage garnishment, foreclosure or repossession
- Dealing with a tax lien or levy
Bankruptcy options for individuals & businesses
Chapter 7
A “fresh start” liquidation that can wipe out most unsecured debt — credit cards, medical bills and personal loans — typically within a few months. Illinois exemptions protect many essential assets.
Chapter 13
A 3–5 year repayment plan that lets you keep your property, catch up on missed mortgage or car payments, stop foreclosure and, in some cases, remove a second mortgage lien.
Chapter 7 Business
An orderly wind-down of a business that can no longer continue, with a trustee handling the sale of assets and distribution to creditors.
Chapter 11
A reorganization that allows a business to keep operating while it restructures debts, renegotiates obligations and builds a plan to return to profitability.
Not sure you need to file? We’ll tell you.
We’ve helped more than three thousand individuals and business owners file for bankruptcy — and many thousands more find the right path to debt relief without filing at all. As a fully insured debt relief agency, we can help with:
- Debt reduction through expert negotiation with creditors
- Debt consolidation assistance and business debt workouts
- Individual or business bankruptcy filings
- Other debt relief programs, as appropriate
We’ll review your finances during a free consultation and recommend a course of action — with no obligation to retain us.
“He communicated clearly what the next steps in filing our Chapter 13 would be and followed through on what he said he was going to do. He was successful in removing our second mortgage lien!”
— P. Nicholas, Chapter 13 clientBankruptcy FAQ
Does bankruptcy still exist after the 2005 law changes?
Yes. The 2005 reforms changed some rules and added requirements, but individuals and businesses can still obtain meaningful relief from their creditors.
What is the difference between the chapters of bankruptcy?
Chapter 7 is a liquidation bankruptcy, in which non-exempt property may be sold and most individuals receive a discharge of their debts. Chapters 11 and 13 are repayment (reorganization) bankruptcies, in which debts are paid in whole or in part through a court-approved plan.
Will I lose my car or my house?
Most of our clients keep their car and home, as long as they can keep up with the payments. The court reviews each secured debt to determine whether it is affordable and reasonable.
Will they take my tax refund?
A refund is an asset the trustee may be able to recover. In Chapter 7, exemptions and timing can often protect some or all of it. In Chapter 13, refunds generally go toward your plan payments. Planning ahead makes a difference — talk with us before you file.
Will my employer find out?
Bankruptcy is a matter of public record, but employers, neighbors and friends usually won’t know unless they search for it or you tell them. If you need to stop a wage garnishment, your employer may need to be notified.
Can taxes be discharged in bankruptcy?
Some income taxes can be discharged in Chapter 7 if the return was due at least three years before filing and was filed at least two years before filing, among other requirements. In Chapter 13, tax debt is generally paid through the plan — often without additional penalties.
Can I leave a credit card with a low balance out of my bankruptcy?
No. All creditors must be listed. Card issuers may also cancel accounts whether or not they’re included.
How long does bankruptcy stay on my credit report?
Up to ten years. In practice, lenders tend to weigh it most heavily for the first two to three years, then focus on how you’ve managed credit since.
Can I buy a home or get credit after bankruptcy?
Yes. Some of our clients have purchased homes soon after their bankruptcy, and secured credit cards are commonly available. It takes some planning — we’ll help you set yourself up for success.