Catching Up on Your Mortgage Through a Chapter 13 Plan Key Takeaways: Chapter 13 bankruptcy may let you catch up on missed mortgage payments by spreading them across a three-to-five-year plan, as long as you keep making your regular monthly payments, under 11 U.S.C. § 1322(b)(5). Filing triggers the automatic stay under 11 U.S.C. § […]
When Filing Chapter 13 Also Shields the Person Who Cosigned Your Loan Key Takeaways: Chapter 13’s co-debtor stay under 11 U.S.C. § 1301 may protect individual cosigners liable with you on consumer debts, and it generally takes effect automatically when your Illinois case is filed. It can shield parents, siblings, spouses, and friends who cosigned […]
Filing Fast When Foreclosure or Garnishment Is Days Away Key Takeaways: An emergency Chapter 13 skeleton petition in Illinois is a minimal filing, typically just the voluntary petition (Form 101), a creditor list or mailing matrix, and a Social Security number statement, that generally commences a case upon filing under 11 U.S.C. § 301 and […]
When Life Derails a Chapter 13 Plan: Understanding Early Discharge in Illinois Key Takeaways: A Chapter 13 hardship discharge under 11 U.S.C. § 1328(b) is a discretionary, court-granted release from certain debts for debtors who cannot complete plan payments due to blameless circumstances, such as disabling illness or death of a wage earner. Illinois debtors […]
Removing an Underwater Second Mortgage Through an Illinois Repayment Plan Key Takeaways: Chapter 13 lien stripping may allow an Illinois homeowner to reclassify a wholly unsecured second mortgage as ordinary unsecured debt when the home’s value is fully consumed by the first mortgage. This remedy flows from case law interpreting the anti-modification rule in 11 […]
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