Filing Bankruptcy – Chapter 7 in Illinois
Chapter 7 bankruptcy is a method for eliminating your debts through liquidation. It’s a good option for people who have a low income and few assets. Chapter 7 Bankruptcy is a federal program, which means it functions the same in Illinois as it does in other states.
Chapter 7 bankruptcy involves liquidating your property to pay off your debts. This means you will have to surrender most (but not all) of your property. Once this liquidation process is complete, any relevant debts you have will be canceled and you will no longer be responsible for paying them back.
If you want to file Chapter 7, you will first need to file a petition with the bankruptcy court. Then, a trustee will be assigned to review your case and make decisions about liquidation.
Benefits of Chapter 7
Chapter 7 has several advantages, including:
- It allows you to gain debt relief within 3-6 months
- You’re able to keep certain exempt property
- You get to keep salary and wages you earn
Disadvantages of Chapter 7 Bankruptcy
While Chapter 7 bankruptcy is a great option for many people, it does have some drawbacks as well.
- You’ll typically lose all non-exempt property
- You’ll have to surrender your credit cards
- Chapter 7 can remain on your credit report for several years
Can I File Chapter 7 and Keep my House?
This will depend on the equity of your home. Under Illinois law, you can generally claim a residence as exempt if it has less than $15,000 equity or $30,000 if you’re married.
If you’re unsure if Chapter 7 is right for you, talk to an experienced attorney about your options. They’ll help you make the decision that’s best for you and your family.
Bankruptcy Attorneys in Cicero, IL
Our attorneys at Koch and Associates are experts at Bankruptcy law. If your debts are causing you unneeded stress, don’t wait to contact our bankruptcy attorneys in Cicero, IL. We’ll take the time to get to know you and your case, so we can take the best course of action. Our attorneys speak both English and Spanish so you can feel comfortable speaking with our team.
Abogados de Bancarrota en Illinois
Nuestro abogados de Koch y Associates son expertos de ley bancarrota. Si usted tiene las deudas, no le preocupas. Nuestro abogados pueden ayudar. Nosotros somos los abogados mejores en Chicago, IL. Llame hoy para una consulta gratís.