Although a great number of people come out of bankruptcy with little or nothing in the way of assets, they do come out debt free and ready to start all over. There is a way under US law to declare bankruptcy without having to lose your assets, it is Chapter 13 bankruptcy. When an individual declares Chapter 13, he or she will be given the opportunity to prepare a plan for financial reorganization and debt repayment over a period of time.
Most people who have a decent job and are reasonably rich in assets that they do not want to lose elect this route to financial freedom. A Chapter 13 bankruptcy attorney in Chicago is brought in to help with the complexities of the process as it demands that a repayment plan be created which is acceptable to the court and the creditors. An attorney is highly recommended due to the complexities of the law, the rules of Chapter 13 are extremely tight and strict; they include taking a credit counseling course, being able to show evidence that the plan is executable and to prove to the satisfaction of the court that both secured and unsecured debt are not in excess of the limits set by law for the declaration of Chapter 13 bankruptcy.
The first step is usually attendance at a credit counseling course, it is here where the debtor finds out what comes next all based their own unique financial situation, it is here where they find out if Chapter 13 is even available to them as a debt relief solution. Those that are eligible must have a job or own a business, the court must be satisfied that the income from the business or wages is sufficient to allow a portion of the debt to be repaid monthly and have enough residual to live. Rarely does an approved plan leave any room for discretionary spending; all monies must be accounted for.
Once the determination is made that the petitioner is eligible, he or she along with their Chapter 13 bankruptcy attorney in Chicago make representation to the court that Chapter 13 is being requested. The petitioner must support the application with a list of all assets and liabilities along with a financial statement that indicates the source and amount of income, a complete listing of debts broken down into secured and unsecured and the names of the creditors. The petitioner and the attorney then develop a reorganization plan which is presented to the court and the court appointed administrator for review and acceptance. With the information that was presented to the court for review the court makes its determination as to the feasibility of the plan.
