What is Bankruptcy?

Kane County Lawyers Explain Different Chapters of Bankruptcy

There are times when financial situations can be downright overwhelming, and it can feel like there is no way out of any of your debts. If debts become such a significant problem in your life, federal law allows opportunities for fresh starts to relieve that financial stress. At Mirabella, Kincaid, Frederick & Mirabella, LLC we can teach you about the most common forms of bankruptcy you can file.

For those who are seeking to restructure or eliminate their debt, the bankruptcy code allows three types of financial relief. One option is Chapter 7 bankruptcy which is liquidation or “straight bankruptcy.” This form of bankruptcy is the most common because it allows the debtor to start completely fresh. You should consider filing for Chapter 7 bankruptcy if you believe you cannot repay any of your debts, if there are no cosigners involved, or if you expect your creditors to take legal action against you.

Another option is Chapter 13 bankruptcy which can allow you to adjust your debts. This method is used for those who have a consistent source of income and would like to pay their debts if they were able to do so. The debtor can arrange a payment plan between three to five years that will have to be approved by the courts. You will often be allowed to keep larger assets such as your home.

Finally, Chapter 11 bankruptcy applies to commercial enterprises that would like to continue operating their business as they schedule repayments of their debts. Upon the plan’s approval from the court, the business can consolidate, unload debt, and reorganize for a fresh start to hopefully prevent future massive debts.

If you or your family believe that you may have to file for bankruptcy, please contact our offices at MKFM Law so that we can review your information during an Initial Attorney Meeting. Do not suffer from crippling debt any longer. We can be reached at 630-665-7300. We serve clients in Elmhurst, Oak Brook, Will County, DuPage County, and across Illinois.