Kane County Bankruptcy Lawyer

Chapter 7

Chapter 7, commonly referred to as “liquidation,” is a form of bankruptcy that is usually the quickest and easiest, involving the surrender of the debtor’s nonexempt assets to the bankruptcy court, where they will be sold and the proceeds will be used to pay off creditors. However, many of these are no-asset cases, meaning the debtor does not have any nonexempt assets to surrender. Chapter 7 is an option available to individuals, partnerships, corporations, and married couples.

Filing a Chapter 7 bankruptcy petition will result in the immediate prohibition of all debt collection efforts (and any related lawsuits) by all of your creditors. Successfully completed, a Chapter 7 case will result in the complete discharge of all eligible, unsecured debt. This may include credit cards, personal loans, utility bills, parking tickets, and much more.

Is Chapter 7 Bankruptcy Right for Me?

Chapter 7 bankruptcy is most often beneficial to debtors with low incomes who do not have a great deal of property or assets that need protection from liquidation. A debtor will also have to qualify under the Chapter 7 means test, as laid out in federal bankruptcy law. This test determines whether an individual or family is above or below the state median income for a family of the same size, and also determines the debtor’s disposable income. If a debtor does not pass the means test, he or she will likely need to file a Chapter 13 bankruptcy petition.

If you are considering filing for bankruptcy in Illinois, Kane County Chapter 7 bankruptcy attorney Joseph Doyle offers a free initial consultation to discuss your case. It may be difficult to know whether you are eligible to file a Chapter 7 petition, as well as what particular benefits and consequences this may have on you now and in the future. Attorney Doyle and his experienced legal team can help you make the right decision for your particular situation.

Contact our firm today to discuss Chapter 7 bankruptcy in Kane County, Illinois.