Chapter 7 Bankruptcy Lawyer in Kane County
Filing for Chapter 7 Bankruptcy in Kane County
Chapter 7 bankruptcy is the most common type of bankruptcy filed in the United States. Commonly referred to as liquidation bankruptcy, Chapter 7 involves selling a debtor's non-exempt assets to a trustee. All proceeds that the bankruptcy trustee obtains are given to the creditors in order to clear the debt of the person who has filed for bankruptcy. There are exemptions and the majority of people who file for bankruptcy actually lose none of their possessions or assets, only debt.
Filling for Chapter 7 bankruptcy can alleviate your financial burden if your debts have are out of control. If you have determined that filing a Chapter 7 bankruptcy could be the right solution for you, the first step is to complete a credit counseling course. This course must be offered by an approved agency and completed within 6 months prior before to filing. You will also be required to attend a debtor education course. This will have to be done after you file for bankruptcy, but before you receive your discharge.
Filing a Chapter 7 bankruptcy petition will automatically result in the immediate prohibition of all debt collection efforts by all of your creditors. If successfully completed, filing for Chapter 7 bankruptcy will enable the discharge of all of your eligible, unsecured debt, including:
- Credit cards
- Utility bills
- Parking tickets
- Personal loans
- Medical bills
And many other forms of debt.
Protected Assets
In the state of Illinois, bankruptcy laws exist that protect certain assets from being liquidated. Under these laws, the following assets are exempt from liquidation in a Chapter 7 bankruptcy:
- Personal residence
- Automobile
- Family heirlooms
- Clothing
- Life insurance
- Child support
- College savings accounts, which are protected by the Illinois College Savings Pool
- Retirement plans and pensions
- Workers' compensation benefits
- Personal injury benefits
If you are interested in finding out more about filling for Chapter 7 bankruptcy, Kane County Attorney Joseph P. Doyle can help. Contact us today!