Filing for bankruptcy as a consumer or business is never an easy decision. But if debt is stifling your daily living activities or that of your business, call a Winnetka bankruptcy attorney at (888) 754-9877 and see if bankruptcy is a viable option for you.

Filing for bankruptcy as a consumer requires that you meet certain income criteria that your Winnetka bankruptcy attorney can verify. You will also want the Winnetka bankruptcy attorney to examine your assets because if not exempt, the trustee may have your surrender them to be sold and the proceeds distributed to creditors.

Winnetka residents also have the option of filing Chapter 13 on the advice of a Winnetka bankruptcy attorney. This is a repayment proceeding where creditors are repaid over 3 or 5 years. Winnetka businesses can elect to file Chapter 11 that gives them an opportunity to revive a struggling operation.

A Winnetka bankruptcy lawyer can advise you on the 3 major types of bankruptcy that apply to consumers and businesses– Chapters 7, 11 or 13.

Chapter 7 Bankruptcy

Chapter 7 is a straight bankruptcy where Winnetka businesses fold their operations and sell off its assets. Debts not secured by property can be discharged. This includes credit cards, department store charges, business debts, past due rent, civil court judgments and certain taxes among others, A Chapter 7 Bankruptcy Lawyer can advise you on what is not dischargeable.

Consumers have certain exemptions regarding their assets that a Chapter 7 Bankruptcy Lawyer will examine, but consumers must surrender those that are not exempt if the trustee feels they are worth selling.

A Chapter 7 Bankruptcy Lawyer also confirms your eligibility to file as a consumer and advises you on your obligations before and after filing. Other than a meeting with the trustee attended by you and your Chapter 7 Bankruptcy Lawyer, you have no court appearances. Any potential issues are handled by your Winnetka bankruptcy lawyer.

A discharge of your debt is granted about 4 months after filing.

Chapter 13 Bankruptcy

Chapter 13 individuals cannot have debt that exceeds certain amounts, which a Chapter 11 Bankruptcy Attorney can verify. Chapter 13 is a repayment proceeding for individuals who are ineligible under Chapter 7 or who file because their Chapter 11 Bankruptcy Attorney advises that it is more beneficial to them.

Chapter 13 can rescue a home from foreclosure or personal property from repossession. Past due amounts are included in a repayment plan along with your other liabilities that is submitted by a Chapter 11 Bankruptcy Attorney to the trustee for approval. Secured creditors and those with priority are paid back over 3 or 5 years. Unsecured debt is generally discharged at the plan’s conclusion.

Your Chapter 11 Bankruptcy Attorney can also explain how junior liens can be stripped in a Chapter 13.

Chapter 11 Bankruptcy

Winnetka LLCs, partnerships and corporations can file for Chapter 11 protection, a reorganization proceeding where creditors are repaid over time. A Chapter 11 Bankruptcy Lawyer files a disclosure statement for the creditors’ information along with a reorganization plan for consideration by those creditors who will not be paid in full under the plan.

The business’ Chapter 11 Bankruptcy Lawyer will attempt to ensure the plan is feasible, filed in good faith, is fair and equitable and beneficial to the creditors. If confirmed, the business goes about its usual and customary operations without trustee oversight. Most businesses will downsize to free up assets, hire certain specialists and re-negotiate contracts, leases and licenses. Any of these decisions must be court-approved if they are considered major business decisions.

A Winnetka bankruptcy lawyer files progress reports and deals with creditor issues. An individual can file Chapter 11 also but should first consider the advice of a Winnetka bankruptcy lawyer.

Call a Winnetka bankruptcy lawyer at (888) 754-9877 about the bankruptcy process and how it can be a solution to debt problems.