Your Chicago bankruptcy attorney will sit down with you and explain the different options available to anyone who wants to file bankruptcy. Most people file one of two forms of bankruptcy, a Chapter 7 or a Chapter 13. In their most simple forms, a Chapter 13 is a debt repayment plan while a Chapter 7 is a debt discharge option. There are different reasons for claiming different chapters and sometimes you may not even qualify for one of the bankruptcy options.
Chicago Bankruptcy Attorney and Best Interest Test
If you're filing for a Chapter 13 bankruptcy there is a best interest test, which means that your unsecured creditors must receive as much in your Chapter 13 bankruptcy as they would have received if you'd filed a Chapter 7 bankruptcy. If you have no assets or your assets are exempt then the best interest test doesn't apply, but if you're looking to protect your assets then this is very important.
Chicago Bankruptcy Lawyer and Best Efforts Test
While it's clear that people who are filing for bankruptcy cannot pay their debts in full they may be able to make some sort of payment. If you have unsecured debts and are filing a Chapter 13 bankruptcy the courts may expect you to make an effort, your best effort, to pay some of those bills off. Your payment plan will be arranged so that you do make payments toward this debt, but in a manner you can afford.
Your Chicago bankruptcy attorney will be able to explain the best interest test and best efforts test to you in greater detail.