illinois bankruptcy exemptions

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Most people I meet to come to say that they want to file a Chapter 7 bankruptcy. This is because Chapter 7 bankruptcy are much shorter than Chapter 13 bankruptcies with average of about four months before the debtor his discharge. Chapter 13 bankruptcy last from three to five years and require monthly plan payments to a bankruptcy trustee. So why would anyone log on to Chapter 13 bankruptcy? Here are the Top Five reasons to choose Chapter 13 bankruptcy.

Cram Down
In some cases, a vehicle or other secured loan you can reduce the value of the collateral. This means that if the loan qualifies, the debtor may lower rates and to pay interest. The hook here is that the vehicle is purchased more than 910 are needed to qualify days before the filing of the bankruptcy case around, and you actually have the Case, finish and get a discharge, so the stuff to be effective.

Protect non-exempt property from liquidation
Sometimes debtors their property with equity, which can not be protected by existing exemptions. For example, let's say debtor owns a car valued at $ 10,000.00 without the lien. Let us say that the debtor is a vehicle to free it, that capital can apply to the amount of $ 3,000.00 must. This leaves $ 7,000.00 unprotected Equity. In a Chapter 7 bankruptcy, the trustee would require the debtor to pay the $ 7,000.00 to keep the car, or, alternatively, if the vehicle to sell to get money to pay the creditors. In Chapter 13 bankruptcy, the debtor may keep the vehicle, but that $ 7,000.00 general unsecured Pay creditors over a period of three to five years.

Repayment plan under court protection
The creditors are often not work provides a payment arrangement and would rather get a verdict against you and garnish your wages. A Chapter 13 bankruptcy allows a debtor a repayment plan propose a three to five years of time, with payments based on your ability to pay. During this time, creditors are not entitled to take action Collection without the permission of the bankruptcy court.

Stop foreclosure and cure mortgage sum
People who have fallen behind the mortgage payments and are facing foreclosure should be a Chapter 13 bankruptcy. Filing Chapter 13 bankruptcy will stop a foreclosure and the debtor to catch up on overdue mortgage payments a longer period.

Lien stripping
A lot of people have more than one mortgage on their home. The second and third mortgages potentially in a Chapter 13 bankruptcy will be deducted. Liens can be removed if they are fully secured, ie it is not a value in order to secure them. Here's an example: own a home and have a first and second mortgage. The first mortgage is for $ 200,000.00. The second mortgage is for $ 50,000.00. The value of the property is $ 190,000.00. In this scenario, the second mortgage would be stripped into consideration, because there is no residual value in the security for the loan.

The choice between Chapter 7 and Chapter 13 requires a thorough consultation. An experienced bankruptcy attorney can help you determine which chapter is right for you.

Jennifer Alter is a founding member of the law firm of Brinkman & Alter, LLC, located in downtown St. Louis, Missouri. Jennifer concentrates her practice in the field of consumer bankruptcy law. She is an experienced St. Louis bankruptcy attorney who enjoys helping Missouri and Illinois families get the relief they deserve. At Brinkman & Alter, we help good people through bad times.

Jennifer Alter
1141 S. 7th Street
St. Louis, MO 63104
http://www.brinkmanandalter.com

For more information regarding bankruptcy, visit our blog at http://www.stlouisbankruptcy.blogspot.com

Senate Session 2011-03-10 (16:29:58-17:35:34)