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Chapter 13
Service
Are you trying
to save your home from a foreclosure? Is your small
business at risk of going under? Is the "repo"
man looking for your car? If so a Chapter 13 bankruptcy
repayment plan may be the answer.
Chapter 13 bankruptcy is an interest-free debt repayment plan
through which you consolidate your debts and make a payment on
your debt over a 3 to 5 year period. While in a Chapter 13 debt
repayment plan, the creditors cannot collect from you, and the
creditors are required by a Bankruptcy Court order to follow the
terms of the plan.
One very important thing to remember about Chapter 13
bankruptcy is that you must be working or have a consistent
source of income for your repayment plan to be approved by the
court. Not only must you be able to pay for your monthly living
expenses, but you must also be able to make a payment to the
court to consolidate your debts.
Debts that are generally handled in a Chapter 13 bankruptcy
are mortgage arrears, balances on vehicle loans, student loans,
credit card debts, taxes and other unsecured debts. All
outstanding debts must be included in the Chapter 13
consolidation.
Stop Foreclosure Immediately
If your home is presently in foreclosure, a Chapter 13
bankruptcy filing will stop the foreclosure any time prior to
the sale, and allow you to repay your mortgage arrears through
your Chapter 13. You will still be obligated to make all future
mortgage payments directly to the mortgage company, but they may
not foreclose to collect any outstanding mortgage payments.
Save Your Car
If the "repo" man is looking for your car, a Chapter 13
bankruptcy will also stop the finance company from repossessing
your car. The past due payments and the entire balance on your
vehicle loan will be consolidated, which you will pay off over
the next three to five years. The vehicle finance company can no
longer repossess your car, and you will no longer have to make a
payment directly to the finance company. Only one payment is
made, and that is to the Chapter 13 trustee. Under certain
circumstances we can even recover your vehicle after
repossession and consolidate the remaining balance.
Consolidate Student Loans
Although you may not eliminate student loans in a Chapter 7
bankruptcy, you can consolidate them, with your other bills, in
a Chapter 13 and stop collection action against you. John
Ellsworth will stop the collection action and garnishments
related to student loan debts and consolidate your bills so that
you may repay them in a plan that is feasible for you.
Tax Debt
We help taxpayers who are way in over their heads by
offer-in-compromise, installment agreements, and
currently-not-collectible status. We also offer income tax
planning guaranteed to reduce your tax bill by more than you pay
us for the service.
Protect Cosigners
Your cosigners receive the same protection that you receive
under Chapter 13. Through a Chapter 13, we will protect your
cosigners from collection activity, and the creditors must wait
to be paid. So, if you friend or relative cosigned on your
vehicle, and you are having trouble affording the payments, we
can put your remaining balance inside a Chapter 13.
Beware of Refinancing
If you have equity in your home, you can file a Chapter 13
bankruptcy, protect your equity, and repay your mortgage arrears
over as long as five years. Refinancing or taking out a second
mortgage may just create an additional mortgage payment that you
cannot afford, so always talk to us before refinancing your
home in order to pay other debt.
Why eat up your equity with another mortgage?
You should explore all of your options, and make sure you
contact us along the way so we may advise you of your legal
rights. When you have quality legal representation, you become
knowledgeable about your rights, and become less vulnerable to
people trying to take advantage of you in a time of distress.
Please remember that we offer a free consultation. Explore
Chapter 13 bankruptcy as an alternative to a high-interest rate
equity loan against your home.
Need to prevent
tomorrow's foreclosure sale? Here is how our Chapter 13 service
works:
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Come to our office
at
222 South Riverside Plaza
(Union Station, Chicago).
Your first meeting is very
important and much information will be exchanged.
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We analyze your pay stubs or P&L.
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We obtain your credit report so that you don't miss
one collector or bill
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Carefully review your
situation with John Ellsworth, Attorney.
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We sign you up for the
credit counseling; you take the 2 hour course by Internet or
phone.
- We prepare the bankruptcy forms and the chapter 13 plan
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You review the forms we
have prepared
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We
discuss the plan with you and make sure it works for you
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You sign the
one signature
page
- We file your case with the court electronically
and stop the sale.
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You will instantly have a case
number assigned to your case by the bankruptcy court. Once you
have this number collectors can no proceed no further. It is just that
simple.
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We fax the lawyers who are trying
to foreclose on your property. We tell them the court has
issued an injunction against them and the state court. Now
they can take no further foreclosure action against you.
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You attend your meeting with the trustee
and we are there with you
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We then attend the plan confirmation hearing before the United
States Bankruptcy Court Judge. There is no need
for you to attend this hearing. Of course you can if you
want.
- You go on with your
life, make your chapter 13 plan payments, safe in your home, freed from the terrible burden of
foreclosure.
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