Under certain circumstances, an individual may wish to file for Chapter 13 in Chicago. This form of bankruptcy is known as €debt adjustment.€ It is only applicable to those who satisfy certain criterion, particularly those established by The 2005 Bankruptcy Act. Above all, the person wishing to file bankruptcy must fall within a certain economic category as evaluated by the Statement of Current Monthly Income and Means Test Calculation.

A person may decide to go ahead and apply for Chapter 13 as a result of careful debate. He or she may decide this is the best option after talking to a lawyer. A bankruptcy attorney in Chicago will look at their personal situation and recommend Chapter 13 if some or all of the following are applicable€

* Imminent or Actual Foreclosure Proceedings: If the home a form of secured property) is going into or is in the midst of a foreclosure proceeding, you can stop it by filing Chapter 13. This will give you the extra time to rearrange repayments to the Mortgage Company or bank.

* Car Repossession: If you depend upon your vehicle - and many Americans do declaring Chapter 13 bankruptcy will cause the action to cease. The monies owed will become a part of your €debt adjustment.€ As is the case with your home, your vehicle is a type of secured property that is covered under Chapter 13.

* Garnished or Assigned Wages: If this is happening to you, Chapter 13 can halt it.

* Certain Tax Debts: Under Chapter 13, some tax debts are allowed to be incorporated into the repayment plan allowing you to pay back the owed money over time.
* Previous Filed Chapter 7: If you have filed Chapter 7 bankruptcy within the preceding 8 years, you cannot refile. As a result, you need to look at filing under Chapter 13.

* Protect Co-Signers: Under Chapter 13, the co-signer is not expected to pay the same penalty as the signer of the debt. This is the case unless the debtor fails to maintain his or her part in the repayment plan.

* Desirable Non-Exempt Property: Unlike under Chapter 7, a debtor can retain possession of various items of non-exempt property.

Overall, a debtor applying for Chapter 13 in Chicago, IL must be able to meet the specific obligations required by the government under the law. He or she must have sufficient income to be able to pay the court fees and provide the monthly sum to the Chapter 13 trustee. They must provide specific details on how they will accomplish this in their fiscal bankruptcy plan. The bankrupt individual needs to be aware of these basic facts before filing. If you find yourself in such a situation, talk to a bankruptcy attorney. He or she can help guide you through the process.