Bankruptcy Overview
Chicago Area Bankruptcy Attorney
We live in increasingly complex and challenging times where jobs disappear and home values plunge. Whether it is due to a recent job loss, unexpected illness, divorce or other family emergency, more and more families rely on credit card debt to make the ends meet and find themselves with mounting debt that they are unable to control and pay. At the Law Offices of Paul T. Marinoff, Ltd. we know how easily good people can get in the spiral of rapidly amounting debt that they have no hope to pay off. We want you to know that you are not alone and that you can get a “fresh start” through filing for bankruptcy. Bankruptcy is the legal procedure that allows individuals, businesses, and other organizations to discharge their debts when they are unable to pay them off in a timely manner. An individual can declare bankruptcy under Chapter 7 liquidation or Chapter 13 reorganization depending the specifics of each case. At the Law Offices of Paul T. Marinoff, Ltd. we will examine your specific situation to determine the best way for you to proceed for debt relief.
The bankruptcy process varies depending on the chapter under which you are filing, but for both chapters you must obtain a certificate from an approved credit counseling agency before you can file your case. This costs approximately $40 and can usually be done quickly online. If you are filing under Chapter 7, you must pass the so-called “means test”. It applies only to individuals and only those individuals whose debt is primarily consumer debt. The means test is essentially comparing the debtor's average income for the past six months to the median income for households of the same size in Illinois. If the debtor's income is less than or equal to the Illinois median income, the debtor "passes" the means test and may file Chapter 7. However, even if the debtor’s income is higher than the state median, the debtor may still qualify to file for Chapter 7. If a debtor does not qualify for Chapter 7 bankruptcy filing, the debtor usually considers filing under Chapter 13.
Once your eligibility for bankruptcy is determined, you are required to gather together all your financial information, itemize your income and expenses as well as your assets and liabilities. At the Law Offices of Paul T. Marinoff, Ltd. we will ensure that all documents are properly completed and filed with the court. Once the petition for bankruptcy is filed under either chapter, all collection activities against you including harassing creditor calls, lawsuits, and wage garnishment will immediately stop. In Chapter 13, along with all your other papers, you file a “Plan” of repayment with your creditors. Once the court confirms your plan, you simply need to make the required payments for the duration of your plan. You will be paying all of your projected disposable income into the plan for a minimum of 36 months, and a maximum of 60 months.
Approximately one month after the case is filed, you will have to attend a meeting, which usually lasts only a few minutes. You will be thoroughly prepared for the meeting by the Law Offices of Paul T. Marinoff, Ltd. If none of your creditors object to your discharge within the 60 days following that meeting, your debts are discharged in Chapter 7 bankruptcy. If you have filed Chapter 13, you will have to continue to make payment pursuant to your “plan”. When it is complete, a court discharging your debts is issued.
If you are considering filing for bankruptcy, contact the Law Offices of Paul T. Marinoff, Ltd. for a consultation today.