Frequently Asked Questions (FAQ's)

What is a statute of limitations?

The phrase “statute of limitations” refers to the law which sets the time limit in which a lawsuit must be filed. Each type of case has a different statute of limitations. For example, in Illinois, most, but not all, personal injury cases must be filed within two years of the date of the injury. If a lawsuit is not filed within the time limit provided in the statute of limitations, the party is barred from ever recovering. Some cases have shorter limitations, so you should consult promptly with an attorney if you are injured.

How much will my case cost?

Our attorneys charge either an hourly rate or a contingency fee depending on the type of case. Our hourly rates and the number of hours billed vary based on the type of case, the complexity of the issue involved, and the staff who work on the file. Regardless of the fee agreement or outcome, the client is always responsible for court costs and expenses.

What is a contingency fee?

A contingency is a pre-determined percentage of the amount an attorney recovers for the client, either through trial or settlement. This fee represents the amount the lawyer is paid for representing the client. Not all cases can be paid with a contingency fee. This type of fee agreement must be in writing.

How experienced are your attorneys?

The best way to learn about our attorneys is to read their profiles on our website. All of our attorneys are highly skilled and work together to ensure that our clients receive the best representation we can provide.

How do I contact an attorney to set up an appointment?

The best way to schedule an appointment with an attorney at our office is by telephone. Any of our attorneys can be reached at 309-341-6000. You can also contact us via email.

What is Bankruptcy?

Bankruptcy is a means for persons or businesses to seek legal relief from their debts. All bankruptcies are handled by the United States Bankruptcy Court, a branch of the federal judicial system. There are several types of bankruptcies available to individuals and businesses. Most individuals file a Chapter 7 or a Chapter 13 bankruptcy.

What is a Chapter 7 Bankruptcy?

Chapter 7 is often referred to as “liquidation bankruptcy.” Under Chapter 7, the court liquidates, or sells, all of the debtor’s non-exempt property to pay off the debtor’s unsecured debts. Once this process is complete, most of the debtor’s debts are discharged and never have to be repaid.

What is a Chapter 13 Bankruptcy?

Chapter 13 is usually referred to as “reorganization bankruptcy.” Under Chapter 13, the debtor submits a repayment plan to the court. Under this plan, the debtor repays most of his or her unsecured debt and gets to keep most of his or her property.

What is exempt property?

Under the federal bankruptcy code and Illinois law, certain property is protected from liquidation by creditors. Some property, like family pictures and most retirement accounts, are protected regardless of their value. Other property, like homes and vehicles, are exempt up to a certain amount.

Do you provide a free bankruptcy consultation?

Yes, Attorney Pamela Wilcox offers a free consultation during which she discusses the following:

Your bankruptcy options;
Obtaining three free credit reports from AnnualCreditReport.com;
The four bankruptcy notices bankruptcy attorneys are required by BAPCPA to provide during an initial consultation with prospective clients;
Credit counseling; and
The process she will guide you through to file for bankruptcy relief in the Central District of Illinois.

What happens after a Chapter 7 Bankruptcy is filed?

After a Chapter 7 is filed, the court issues an automatic stay. The automatic stay prevents creditors from collecting any debts without the approval of the bankruptcy court. The court will also appoint a Bankruptcy Trustee to review all debts and assets and liquidate any property that is not exempt. At the close of the case, the court will discharge most remaining unsecured debts.

What happens after a Chapter 13 is filed?

After a Chapter 13 is filed, the court issues an automatic stay. The automatic stay prevents creditors from collecting any debts without approval of the bankruptcy court. The debtor then proposes a repayment plan to repay some or all of his or her unsecured debt. Once this plan is approved by the court, the debtor makes monthly payments to the Trustee who pays all creditors entitled to payment under the repayment plan. Repayment plans typically last three to five years.

What debts cannot be discharged?

Federal bankruptcy law prohibits the discharge of alimony or maintenance, child support, certain taxes, fines, all student loans, and any debts not disclosed to the Bankruptcy Court. Additionally, creditors may request that specific debts not be discharged if those were debts were incurred through false information, fraud, embezzlement, drunk driving, or other willful or malicious acts.

What is a reaffirmation agreement?

In a Chapter 7 bankruptcy, the debtor can enter into a contract with the creditor in which the debtor agrees to repay the debt secured by a lien on a specific piece of property the debtor desires to retain. These agreements are typically used for mortgage loans on real estate or vehicle loans.

How long will a bankruptcy stay on my credit report?

A bankruptcy can appear on your credit report for 10 years.

How can I rebuild my credit score after a bankruptcy?

Here are six steps you can take to improve your credit score after filing bankruptcy:

1. Open checking and savings accounts.

2. Examine your credit report to make sure all debts included in your bankruptcy are reported as "included in bankruptcy."

3. Pay all of your bills on time.

4. Obtain a secured credit card. A secured credit card is typically secured by a savings account. Make sure the card has a low annual fee and interest rate, reports to at least one of the major credit bureaus, and converts to an unsecured credit card after 12-18 months of timely payments.

5. Apply for a car loan. If you have been paying your bills on time and not using too much of your available credit, you should be able to obtain an auto loan. Be careful of high interest rates, but be prepared to pay well over the average. You may also want to consider getting someone to co-sign your loan.

6. Buy a home. You can typically obtain an FHA loan 2 years after bankruptcy. These loans have interest rates that are only slightly higher than regular mortgage rates.