WE ARE OPEN - LEGAL SERVICES ARE ESSENTIAL SERVICES - Our 24 hour free consultation hotline is open to answer all your questions. Our attorneys are working around the clock to assist you and answer all of your questions. Please call now with any questions! In order to better assist our clients we can conduct consultations via video, phone or in person. Please don’t hesitate to call us if you have any questions!

Chicago Bankruptcy Attorney
Call for a Free Consultation 312.945.7451
Common Questions About Bankruptcy

What is the Difference Between Chapter 7 and Chapter 13?

Chapter 7 and Chapter 13 are very different processes. Chapter 7 takes only about 4 - 5 months to complete and Chapter 13 will take 3 - 5 years. The form of bankruptcy that will best suit your personal financial situation.

The method by which it will be determined whether you should file Chapter 7 or Chapter 13 will be based upon the following:

  • Your assets and liabilities.
  • The income you earn.
  • The amount of your disposable income.
  • Whether you are buying a home and how much equity you have in the home.
  • Whether you have second or third mortgages.
  • Whether you have a co-signer on your mortgage you need to protect.
  • The types of debts you have, and whether they are secured by collateral.

Should I file Chapter 7 or Chapter 13?

The first step in determining whether you should file Chapter 7 or Chapter 13 is to take the means test. If your income is higher than the state's median, you will not qualify to file Chapter 7, and can file Chapter 13. In Chapter 13, the debts you owe (including overdue mortgage payments) are paid off over a 3 - 5 year period in an individually created repayment plan. This form of bankruptcy temporarily stops foreclosure proceedings and all other collection actions. You will have the opportunity to extend the payment of your secured debts over the entire repayment period, which can be a great advantage to homeowners. There are limits to the level of debt you can owe to qualify for Chapter 13.

In Chapter 7, a great number of debt are discharged - they are gone forever. These include credit card bills, medical bills, utilities, personal loans, some types of tax debt and others. When a debtor is released from the obligation of these debts, he or she is in a far better financial situation, free from the pressure of creditors calling day and night, and can move on with a fresh start.

Get in touch with our Chicago lawyers!

Do you qualify for Chapter 7 or Chapter 13? Call us and we can assist you to get the answers you need about your debt problems.

Related Reading

Call today to speak with an attorney you can trust.

Our Past Clients Share Their Stories

  • “Quede muy satisfecho. Gracias!”

    Carlos O.

  • “El trabajo fue excelente y la comunicación con los abogados y los asistentes perfecta.”


  • “If you're looking for a great bankruptcy attorney, this is your firm.”


  • “You all are the best lawyers in Illinois.”

    D. W.

  • “Thank you!”

    Tameka W.

  • “The process was fast thanks to Ted and Jennifer.”


  • “It was very professional and fast. I’m very happy!”


  • “Muchas gracias por sus servicios!”


  • “I would like to thank you for all the effort, time, patience, professionalism, and effectiveness...”


  • “Thanks to you guys I did not lose my house and you always there for me from the start to the end.”


  • “Do not hesitate to use them for your bankruptcy issues.”


Contact Us Today

Schedule Your Free Consultation
    • Please enter your first name.
    • Please enter your last name.
    • Please enter your email address.
      This isn't a valid email address.
    • This isn't a valid phone number.
    • Please make a selection.
    • Please enter a message.