Common Questions About Bankruptcy

Who can file for bankruptcy in Illinois? Any person, corporation, business trust or partnership may file a bankruptcy case. However, corporations, partnerships and business trusts be represented by a lawyer. While an individual may file without an attorney, this is not recommended.

Do I need an attorney to file? You may file your own bankruptcy petition if you are an individual, but it is difficult to successfully file and complete your case without a competent attorney at your side. The process itself is complex, and the ramifications of an incorrectly or fraudulently filed bankruptcy petition are harsh. Your chances of successfully discharging your debt, stopping foreclosure or reorganizing debt are much greater with the proper legal counsel.

What is Chapter 7 bankruptcy? Chapter 7 bankruptcy is an option for a person with a low income who is facing overwhelming debt. After passing the means test (to ensure you do not make too much money to file) you can file under Chapter 7. This type of bankruptcy involves liquidating the debtor’s nonexempt assets and using the proceeds from this to pay off creditors. At the end of a successful Chapter 7 bankruptcy, all of the debtor’s eligible debts will be discharged, giving the debtor a fresh start.

What is Chapter 13 bankruptcy? Chapter 13 is a form of bankruptcy that involves reorganizing debt and creating a payment plan to pay a portion of this debt over a period of three to five years. Chapter 13 can stop foreclosure proceedings and allows individuals with regular incomes the opportunity to file for bankruptcy and discharge eligible debts.

What are some of the benefits of filing for bankruptcy? Depending upon whether you file a Chapter 7 or Chapter 13 case, bankruptcy can provide a number of important benefits. The overall goal in any bankruptcy case is to give the debtor a fresh start financially. Bankruptcy can stop creditor harassment and legal proceedings or contact from creditors, stop foreclosure and wage garnishment, stop repossession, and result in the discharge of debt.

Contact Chicago bankruptcy lawyer Joseph P. Doyle today to learn more about this important topic.