Legal Question in Bankruptcy in Illinois

Bankruptcy Illinois

My divorce which was just finalized last week has left me financially ruined. I went from $180,000 per year combined income to 55,000 per year. 3 weeks after I filed for divorce my ex lost his job and I basically was living and paying for my legal bills off my credit cards. I just can't keep up, I've never not paid my bills in my life. I am starting to consider bankruptcy but am told I can only file Ch. 13. I know nothing about the effects of this. I just want a fresh start, but it seems like with the 13, I have to pay everything back, what is the difference between that and Consumer Credit Counseling? Thank you.


Asked on 6/30/08, 7:41 pm

2 Answers from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

Re: Bankruptcy Illinois

First, it would be helpful to know where you live. That said, Consumer Credit Counseling is in my opinion, a waste of time and money, affording NONE of the protections to a consumer provided by filing a BK petition.

Whether you can file a 7 or a 13 is solely determined by the B22c calculation. It is impossible to answer this question without having the "numbers" inputed by you so that the calculation can be made. The calculation compares your relevant income/expenditures with IRS standards.

Bottom line, here, is that you need to see a bankruptcy lawyer like me as soon as possible.

Good Luck!

By the way, my contact information is on the site.

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Answered on 6/30/08, 7:50 pm
Michael Perez Law Office of Michael A. Perez

Re: Bankruptcy Illinois

Chapter 7 is a complete wash of your debts. It is used mostly by those who do not have the income available to pay their bills and necessary living expenses. Those in chapter 7 have no real estate or equity in real estate.

Chapter 13 is for people who have sufficient income to meet their bills and necessary living expenses but got behind and need time or a plan to repay the "behind" part of their debt. The court allows up to 60 months to pay the arrears. Ususally those in chapter 13 cases have assets or equity in real estate that they want to protect by paying their debts over time.

Mike

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Answered on 6/30/08, 10:48 pm


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