Joshua Martin – Citizens Law Group LTD
Feeling crushed under the weight of your debt? Filing for bankruptcy could be the relief you need. Speak with an experienced Chapter 20 Bankruptcy attorney today to discuss your options and start the process of regaining your life through debt relief.
What Is Chapter 20 Bankruptcy?
Chapter 20 Bankruptcy is when Chapter 7 and Chapter 13 Bankruptcy are filed back to back. This eliminates unsecured debt and then eliminates liens on things like your home.
Once you have filed Chapter 7 Bankruptcy to reduce your overall debt, you immediately file Chapter 13 Bankruptcy to give you an extended period of time to cure any arrearages on debts that were not discharged under the Chapter 7 Bankruptcy.
Under Chapter 7 Bankruptcy, there are no debt limits and you receive your discharge quickly. It is a great way to discharge unsecured debts, but there are some limitations. For example, you cannot discharge a mortgage or an auto loan under Chapter 7 Bankruptcy.
Under Chapter 13 Bankruptcy, creditors are forced to give the debtor extra time to pay off secured debts – such as mortgages and auto loans. It is a lengthier process, but ultimately can provide greater relief.
When you file a Chapter 13 immediately after your Chapter 7 is granted, you are able to drastically reduce your overall financial burden. This is called a Chapter 20 Bankruptcy. Sometimes, the court will even allow you to file the Chapter 13 Bankruptcy before your Chapter 7 Bankruptcy case has closed, but after debts have been discharged.
Typically, you must wait four years to file Chapter 13 Bankruptcy after filing Chapter 7 Bankruptcy. Waiving that period does mean that you aren’t able to discharge any debts in the Chapter 13 Bankruptcy, but there are other benefits to the process that may better suit your needs.
What Are The Exemptions Under Chapter 20 Bankruptcy In Chicago, IL?
There are several exemptions under Chapter 20 Bankruptcy in Chicago, IL. An exemption is a protection of your assets against creditors. There can be both state and federal exemptions under Chapter 20 Bankruptcy law.
In order to qualify to use exemptions in Chicago, IL you must have lived within Illinois for a minimum of 730 before filing for bankruptcy. If you have not lived in Illinois for 730 days, you would use your previous state’s exemptions when filing your bankruptcy case.
Some of the exemptions for debtors living in Chicago, IL are…
- Wildcard exemption,
- Motor vehicle exemption, and
- Homestead exemption.
These are the most common exemptions you will be entitled to when filing for Chapter 20 Bankruptcy. These exemptions are in place to protect you from losing assets which directly impact your ability to live and work.
Some other exemptions you may qualify for when filing for Chapter 20 Bankruptcy could include…
- Burial funds,
- Insurance benefits, and
- Retirement funds.
Do you want to learn more about Chapter 20 Bankruptcy in Chicago, IL? Speak to an experienced Chapter 20 Bankruptcy attorney today by calling Joshua Martin of Citizens Law Group LTD at (312) 313-1033 today!