Chapter 13 Bankruptcy is often used to save the family home.  Chapter 13 is also used to refinance auto loans by reducing the interest rate, reducing the payment amount and extending the term of the loan.   Initial Bankruptcy Consultations are usually free with the purchase of a credit report usually included in the bankruptcy fee.  The attorney client privilege does apply with limitations to bankruptcy consultations.  This is one reason why it is important to have your bankruptcy consultation in person.  To start a bankruptcy today, you should call the attorney’s phone number, schedule and appointment and then decide whether bankruptcy is right for you.

What Types of Debts Eliminated in Chapter 7 Bankruptcy?  Credit Card Debt is usually discharged.  However, charges made within 90 days of the bankruptcy filing may be non-dischargeable – especially if they are luxury good purchased.  Most Income Taxes that are Over 3 Years Old; Home Mortgage Personal Liability.  This is helpful if you believe that a deficiency judgment might issue against you in foreclosure.  Condominium Association Assessments (Pre-Petition). You are liable for condo assessments that accrue after the date of filing.  Personal liability on home auto loans.

What Debts are Modified in Chapter 13 Bankruptcy? Home Mortgage Loans – arrears can be paid off in the bankruptcy.  Home Equity Lines of Credit – junior mortgages such as second mortgages can be stripped off if the value of the property is less than the balance of the first mortgage. Automobile Loans – the interest rate on an automobile loan is often reduced to the prime rate plus 3% or less. 

What does it cost to file a Chapter 13?  Most Chapter 13’s can be filed for a very reasonable fee.  To Qualify for the lowest rates on a Chapter 13, you must be employed in a job that can accept a payroll order.  Therefore, self-employed debtors are often times paying more up front as their cases are riskier to all creditors including the debtor’s attorney.  Debtors must make enough non-commission or contingent income in each pay period to cover debtor’s base Chapter 13 Payment.

In the United States Bankruptcy Court for the Northern District of Illinois, a Chapter 13 Attorney is paid a flat $4500.00 fee for the entire term of the Chapter 13 Bankruptcy.  This fee is paid pursuant to the court’s Model Retention Agreement.