Best Probate Attorneys in Plainfield, IL

If you’re experiencing financial distress and can’t pay your debts, filing for bankruptcy may be a viable option. Bankruptcy provides a fresh start and relieves some of the burden on your finances. However, it can be difficult to navigate the different types of bankruptcy and choose the right one for your situation. If you live in Illinois and need to file for bankruptcy, you may be wondering whether to file for Chapter 13 bankruptcy or another type. In this blog, we’ll explore whether chapter 13 bankruptcy is right for your specific financial situation.  1. What is Chapter 13 Bankruptcy? Chapter 13 bankruptcy restructures your debts into a manageable payment plan over three to five years. You will be required to pay back a portion of your debts, depending on your income and expenses. This is different from Chapter 7 bankruptcy, which involves liquidating your assets and using the proceeds to pay off your creditors. 2. How to Determine if Chapter 13 Bankruptcy is Right for You To determine if Chapter 13 bankruptcy is right for you, consider the following: - Your income: Chapter 13 bankruptcy is typically more suitable for those with a steady income. If you qualify for this type of bankruptcy, you can keep your assets and repay your debts in a manageable payment plan. - Your debts: Chapter 13 bankruptcy is best for those with unsecured debts like credit cards, medical bills, and personal loans.