Get a Hold on Your Finances with Chapter 13 Bankruptcy in Pekin IL
We can’t predict what the future holds. Sometimes, a bad accident can put you out of work. Or, unforeseen home repairs can begin to add up. In the end, you might be left with an insurmountable amount of debt with no reasonable way to manage it. And if you’ve exhausted all other financial options, a bankruptcy filing might be your last choice. Thankfully, when it comes to Chapter 13 bankruptcy in Pekin IL, Stephens Fiddes McGill & Associates, P.C. can lend a hand.
What’s Chapter 13 Bankruptcy?
While Chapter 7 involves liquidating assets to pay or forgive debt, Chapter 13 deals more with consolidating your debt. After filing for Chapter 13, all your debts are organized into one. You are then given a strict but manageable payment plan to help you pay off your debts within three to five years. Any debt remaining after your payment plan concludes is then discharged.
What Can and Can’t Be Consolidated
Of course, while Chapter 13 allows you to consolidate most debts, there are exceptions. However, you can take some relief, knowing the majority of debts are covered. For example, Chapter 13 bankruptcy consolidates or discharges:
- Medical Bills
- Utility Bills
- Lawsuit Judgements
- Personal Loans
- Medical Bills
- Credit Card Debt
- Some Divorce Proceeding Debts
- Government Fines (Non-Criminal)
Conversely, there are some debts you’ll still be responsible for outside of your Chapter 13 filing. These debts include:
- Car Loans
- Home Mortgage
- Alimony
- Child Support
- Student Loans
- Government Fines (Criminal)
Chapter 13’s Advantages and Disadvantages
Before we decide on filing Chapter 13 bankruptcy in Pekin IL, Stephens Fiddes McGill & Associates will run through every financial option with you. From negotiating with creditors to connecting you with credit counseling, there are avenues to explore before bankruptcy. However, if it comes down to filing, these are some of Chapter 13’s advantages and disadvantages:
Advantages:
- Payments and terms are flexible
- Assents aren’t liquidated
- You can keep what you’re paying on (Cars, property, etc.)
- You can repeatedly file for Chapter 13
- After you complete your payments, the remaining debt is forgiven
Disadvantages:
- A significant time commitment
- Payments must be made for risk of having your case dismissed
- You must commit all disposable income to make payments
- Your credit score will be significantly impacted
Call Today
If you’re on the fence about whether you should file for Chapter 13 bankruptcy in Pekin IL, allow the professionals at Stephens Fiddes McGill & Associates, P.C. to be your guide. Or, to learn more about our additional legal services, you can call us today at 309-637-5297. Also, our office is located at 456 Fulton St, Ste 222, Peoria, IL 61602.