The decision to seek bankruptcy protection is difficult for many people. Determining what type of bankruptcy would be best is the next hurdle. Depending on the circumstances, the team at Kepple Law Group may recommend that you pursue a Chapter 13 bankruptcy. Why would this approach be best? Here are four possibilities.

Some or Most of Your Debts Cannot Be Discharged in a Chapter 7 Bankruptcy

Not all debts can be discharged in a Chapter 7 bankruptcy. Some can only be discharged under uncommon and specific circumstances. Debts like back taxes are a prime example.

If debts that cannot be discharged in a Chapter 7 account for the majority of the debt, the lawyer is likely to recommend a Chapter 13. This solution allows you to repay those debts over a three to five year period. Some of your other debts may also be settled during that time frame. At the end of the court-approved period, any remaining debts are discharged.

You Can’t Afford a Chapter 7 Bankruptcy

With a Chapter 7 bankruptcy, the client usually pays the bankruptcy lawyer in up front. Things work a little differently with a Chapter 13. It’s possible for the lawyer to file the remaining balance as a priority debt within the Chapter 13 filing. As the trustee remits payments to creditors, the priority debts are settled first. That means the attorney will receive the remainder of the fee through the court. Once the priority debts are settled, the trustee moves on to any remaining debt.

Garnishments are Stopped for the Duration of the Bankruptcy

All forms of bankruptcy stop garnishment actions. That includes the filing of new garnishments by your creditors. In the case of a Chapter 13 bankruptcy, the creditors named in the petition or any agencies that buy the outstanding debt are not permitted to take any legal action against you. That holds true for the duration of your Chapter 13. At the end of your three to five year Chapter 13 bankruptcy period, the court is likely to discharge any balances that remain. The result is that none of those debts are eligible for collection.

A Matter of Personal Pride

One reason that has nothing to do with legalities is the pride of the person seeking bankruptcy protection. Some individuals may feel badly about the reversal of fortune that led to the need to seek bankruptcy protection in the first place. Since that change in financial circumstances has made it impossible to honor debts that were entered into with every intent of repaying them, filing a Chapter 13 petition may be viewed as a way to partially honor that intention. Depending on the amount of debt involved, the debtor may end up paying all or at least most of those debts and feel better by doing so.


Is a Chapter 13 bankruptcy in Illinois be the right choice for you? We’ll help you find out. Everyone’s situation is unique to them. The only way to know for sure is to talk with a bankruptcy lawyer. Call Casey Kepple today and make arrangements for a consultation. You can enjoy a free 30-minute meeting that will provide time to undergo a means test and learn more about what sort of protections the court can provide.