Most areas of law are complicated, but bankruptcy law, more specifically consumer bankruptcy law, brings with it a litany of complex legal requirements to understand. For Lake County bankruptcy lawyers and the clients they represent, bankruptcy became even more complicated in 2005. That’s when the Bankruptcy Abuse Prevention and Consumer Protection act was signed into law. Bankruptcy Abuse Prevention and Consumer Protection act created requirements that individuals and businesses had to meet in order to file for certain kinds of bankruptcy. For consumers this means eligibility for bankruptcy is hard to determine without legal guidance from an experienced bankruptcy attorney. James Burns was asked by the Chicago Bar Association and American Bar Association to teach the new law to other attorneys. The Burns Law Firm P.C. specializes in helping clients file for chapter 7 and chapter 13.
Chapter 7 occurs when a debtor files a petition with a bankruptcy court to eliminate most debt. However, most often a debtor can keep their home, car, and possessions provided that they have the proper protections used by their bankruptcy lawyer. Filing a chapter 7 bankruptcy claim is generally the quickest and simplest way to settle debts. Individuals, businesses, and corporations can all file for chapter 7 bankruptcy.
Much of the changes in bankruptcy law enacted by the Bankruptcy Abuse Prevention law mentioned earlier deal with chapter seven bankruptcies.
Chapter 13 bankruptcy deals with the reorganization of debts, it is also called a wage earner’s plan. This chapter allows individuals who do have a regular income to restructure their repayment plan in a way that satisfies their financial situation. In Chapter 13 the debtor cannot owe more than a certain amount, so individuals or small companies usually choose to pursue this chapter.
Chapter 13 allows debtors to:
1. Pay over time
2. Avoid giving up their assets
3. Agree to an established payment plan.
The law instituted income requirements and took much of the power from individual courts so fewer consumers would be eligible. The one saving grace for consumers who don’t technically qualify for chapter 7 under the new rules is the existence of “special circumstances.”
The Burns Law Firm P.C. specializes in consumer bankruptcy, helping to permanently eliminate or restructure your debt so you can move on with your life. We are experienced in jumping through the many legal hoops that accompany the filing of chapter 7 and chapter 13 bankruptcy claims. Let The Burns Law Firm P.C. be your trusted Gurnee Chapter 7 lawyer. Fill out a form online or call for a free initial case evaluation.