What Is Bankruptcy?

A Bankruptcy Is Filed under Federal Law and Is Designed to Eliminate or Manage Your Debt by Filing a Chapter 7 or Chapter 13 Bankruptcy Petition.

Chapter 7 Bankruptcy:

A Chapter 7 bankruptcy will eliminate most unsecured debt, but some debt has been designated as nondischargeable under the Bankruptcy Act, which would be student loans, taxes, child support, alimony, and maintenance. Under Chapter 7, you can also manage your secured debt, you can cancel that debt and surrender the security, if you so choose, or keep the secured debt and reaffirm the debt under the Bankruptcy Act.

Each Chapter 7 is unique, and to determine if you qualify for Chapter 7 and how it will affect you, please contact our office for a Free Bankruptcy Consultation at (309) 788-9541

Chapter 13 Bankruptcy (Wage Earner Plan):

Under a Chapter 13 wage-earner plan, you keep your property and propose a plan to repay your debts over 3 to 5 years. During this period of time, you pay monthly payments under your Chapter 13 Plan to the Chapter 13 Trustee who, distributes this money to your creditors. Chapter 13 provides a way to catch up on past due house and vehicle payments, to avoid foreclosure on your home, and repossession of your vehicle, The amount you pay back to your unsecured creditors depends on your schedules and can range from 0% to 100%.  Chapter 13 is used to save a home from foreclosure.

There are two other chapters under the Bankruptcy Code that an individual can file under Chapter 12 (which is for farmers), and Chapter 11. there is also a new part V to Chapter 11 for small businesses in trouble, which takes some of the expense out of a Chapter 11 filing.

The above is a general overview of Chapter 7 and Chapter 13, and to determine which chapter would be right is a process that can be done by making an appointment for a consultation regarding your financial problems and whether bankruptcy is even the right option for you.

Deutsch & Deutsch lawyers file bankruptcy for clients in the Bankruptcy Court for the Central District of Illinois, which includes the following Illinois counties: Rock Island, Henry, Mercer, Knox, and Warren. We also represent clients in the Bankruptcy Court for the Southern District of Iowa, which includes the following Iowa Counties Scott, Muscatine, and Clinton counties.  

If you live in Rock Island, IL, Moline, IL, East Moline, IL, Silvis, IL, Milan, IL, Davenport, IA, Bettendorf, IA, Clinton, IA, or Muscatine, IA., call Deutsch and Deutsch Law Offices at 309-788-9541 or email us at Deutschlaw@gmail.com to resolve your debt problems. 

Bankruptcy Results

Stop Bill Collectors and Harassing Phone Calls:

After a bankruptcy case is filed, bill collectors are stayed by the bankruptcy court from
contacting you. The bill collector has to call the attorney's office after the bankruptcy is filed, he cannot contact the Debtor. A bankruptcy filing will get the bill collectors off your back. It is federal law and it is your legal right.

Stop Foreclosures:

A bankruptcy filing will stop a foreclosure. If a foreclosure has been filed against you, Chapter 13 can be used to make up your back payments and prevent you from losing your home. If your home is being foreclosed or you are behind in your mortgage payments, a Chapter 13 filing can save your home. Chapter 13 can be used to strip a second mortgage if there is no equity.

Stop Repossessions:

If you are behind on your vehicle payments, the filing of a bankruptcy will stop the repossession process. In addition, a Chapter 13 filing will allow you to make up your back vehicle payments to prevent your vehicle from being repossessed. A bankruptcy filing will help you keep your vehicle, if that is what you want.

Stop Garnishments:

If your wages are being garnished or you are threatened with garnishment, the filing of a bankruptcy will stop the garnishment. Once the garnishment is stopped, under your bankruptcy filing, you can deal with the underlying debt, but with your wages restored and the garnishment stopped.

Stop Lawsuits and Judgment Collections:

If a creditor is suing you, you can stop the lawsuit by filing a bankruptcy. This not only saves you the costs of defending the lawsuit, but it stops the creditors from proceeding with their lawsuit and stops the collection of a judgment already obtained by the creditor.