If you feel stretched thin financially and are struggling to pay your bills each month, it may be time to contact a bankruptcy lawyer. They’ll tell you if this legal form of debt relief is right for you. Below are some frequently asked questions about the process.

Frequently Asked Questions About Bankruptcy

What is Chapter 7 bankruptcy?

When you file for protection under Chapter 7, also known as liquidation bankruptcy, you’re given the opportunity to repay creditors through the sale of your assets. By liquidating personal property, such as real estate and jewelry, you can pay back a portion of unsecured debts, including credit card bills, medical bills, and loans. Chapter 7 is intended to protect debtors who have limited income to pay creditors all they owe. 

How does it differ from Chapter 13 bankruptcy?

Chapter 13 bankruptcy is designed for debtors who have steady monthly incomes. Instead of requiring them to sell a car, for example, to repay a creditor, their debts are restructured, making them more manageable to pay back over time. Chapter 13 is often referred to as reorganization bankruptcy. Under Chapter 13, a bankruptcy lawyer negotiates terms for a repayment plan with your creditors. 

Will bankruptcy erase all of my debt?

Some types of debt cannot be discharged, including child support, alimony payments, income tax penalties, restitution fees, and fines for causing personal injury or wrongful death resulting from intoxication. 

Do I need a bankruptcy lawyer?

Having a bankruptcy lawyer by your side is extremely beneficial. The law is complicated and involves a lot of paperwork. The smallest error may cause delays and cost you precious time and money. You’ll also benefit from the expertise of an attorney with experience to negotiate with creditors.

Our firm practices bankruptcy law and is considered a debt relief agency by federal law. We help people file for bankruptcy relief under the Bankruptcy Code.

If you think you might benefit from filing for bankruptcy, contact Pepping, Balk, Kincaid & Olson, Ltd. Based in Silvis, IL, this seasoned legal team serves more than 2,000 clients each year. In addition to bankruptcy, they also handle cases involving estate planning, family law, real estate, and more. Visit their website to learn more about their practice areas, and call (309) 755-5096 to speak with a bankruptcy lawyer today.