Our attorneys at Colosimo, Ewing and Smith LLC put themselves on the front lines of your battle with debt, foreclosure, repossession, and more. As bankruptcy attorneys in the state of Illinois, our Colosimo, Ewing and Smith attorneys will walk you through each step of the bankruptcy process, stand beside you for support, and help you put your affairs back in order.
Bankruptcy is a common escape from the crushing weight of personal or business-related debt. Different forms of bankruptcy help pay off your debts immediately, restructure your agreement to ease increasing interest fees, or prevent the more damaging outcomes of unpaid bills.
Types of Bankruptcy
Three main types of bankruptcy that clients and bankruptcy attorneys file are Chapter 7, Chapter 11, and Chapter 13 bankruptcy. Each variety of bankruptcy gets filed for a different reason and addresses a different aspect of debt relief.
Those who have recently lost their jobs, or are otherwise unable to make payments, often file Chapter 7 bankruptcy. It eliminates the most considerable portion of your debt by liquidating your major assets. Many property exemptions exist in the state of Illinois that allow you to keep certain valuable assets, such as your pension, social security or disability benefits, or up to $15,000 in real property, even after filing for Chapter 7. Spouses filing at the same time may double these exemptions.
Chapter 11 bankruptcy is relevant for businesses but is also available to both individuals and married couples. You may hear it called reorganization bankruptcy, as its filing can prevent foreclosure sales, renegotiate loans and debt payments, repay past due tax debt, and perform similar forms of debt relief. Chapter 11 is one of the more complex forms of bankruptcy, and when applying, you must follow all obligations and duties set forth by the Bankruptcy Code.
Chapter 13 bankruptcy applies to individuals and married couples, not businesses, who make some form of regular income. Income can include wages, unemployment compensation, disability or social security benefits, court-ordered alimony, rental income, or regular payments from third parties. The purpose of Chapter 13 is to establish a payment plan based on this income that involves paying off portions of your debt over time, as you are able, rather than liquidizing the majority of your assets all at once.
When Is Bankruptcy the Best Option?
Often, a perceived stigma attaches to the prospect of filing for bankruptcy. But CES Law attorneys believe that a client should feel no shame in asking for a helping hand. As we struggle through these difficult times together, more and more Illinois residents find themselves overwhelmed by debt, through no fault of their own.
In a majority of cases, people declare bankruptcy in the United States in response to outstanding medical debt and the threat of home foreclosure. While businesses will often file bankruptcy to avoid shutting down, bankruptcy is, in fact, a tool designed to help individuals and married couples stay in their homes and end harassment by creditors.
Other common causes of bankruptcy might include outstanding student loan debt, IRS action in response to unpaid taxes, sudden job loss, credit card debt, or the loss of or separation from a family member who provided significant financial support.
Bankruptcy Attorneys in Plano and Yorkville, Illinois
Whether you have filed for bankruptcy previously or are doing so for the first time, you likely have questions or concerns about what the process looks like. You may also wonder about your eligibility as an individual, business, or married partnership.
The Bankruptcy Code has strict rules regarding both repeat and first-time declarations. Understanding those rules and how they apply to your situation is what our lawyers at CES Law are here to do. Our experienced attorneys have handled a variety of trial and civil cases over more than two decades, and we will help you every step of the way should you decide that filing for bankruptcy is right for you.
When it feels as though the world is against you, our bankruptcy attorneys at Colosimo, Ewing and Smith, LLC are here to help. We want to keep Illinois residents, businesses, and families that are looking for Plano and Yorkville attorneys in their homes and in control of their lives.
In addition to the nearby cities of Plano, Yorkville, Oswego, Aurora, Sandwich, Somonauk, Montgomery, Bristol, Plattville, Lisbon, Newark, Millbrook, Boulder Hill, we proudly serve the Illinois counties of Cook, Kane, Kendall, DeKalb, DuPage, Grundy, LaSalle and Will. Please call us today for a FREE consultation.