Chapter 7 Bankruptcy in Chicago, Illinois

Experienced Chicago Bankruptcy Attorney

In the face of overwhelming debt and creditor harassment, it is easy to think that you have no options. Fortunately, nothing could be further from the truth. Federal bankruptcy law gives debtors just like you the opportunity to file for bankruptcy in order to get a fresh start. As an experienced Chicago bankruptcy lawyer, Joseph P. Doyle offers a free initial consultation to help you get started.

The primary purpose of Chapter 7 bankruptcy is to eliminate your legal obligation on unsecured dischargeable debts. After a successful Chapter 7 bankruptcy, the debtor will have no liability for discharged debts. Bankruptcy law may also eliminate your legal obligation on secured debts such as the debtor’s personal residence or motor vehicle. In some instances, debtors may reaffirm on secured debts to reinstate the prior legal obligation and continue to make regular payments as they enjoy the use of their property. However, some types of debts cannot be discharged. Classic examples include child support, student loans, and particular taxes.

What is Chapter 7, and What Property Can I Keep?

Chapter 7 bankruptcy is a liquidation of the debtor’s nonexempt assets. The bankruptcy trustee owns the property of the debtor and liquidates the debtor’s unprotected assets. During this process, the assets of the debtor are sold and the proceeds are used to pay creditors. The bankruptcy code allows a Chapter 7 bankruptcy debtor to retain certain basic assets, known as exempt property. Following are some examples of property that may be exempt in an Illinois bankruptcy:

Pensions and Qualified Retirement Plans – 100% protected
Alimony and child support – 100% protected
Social Security Benefits and Lump Sum Payments – 100% protected
Workers’ Compensation – 100% protected
College Tuition 529(a)(1) Savings Account – 100% protected
Wearing Apparel – 100% protected
Whole Life Insurance – Cash Surrender Value – 100% protected only if beneficiary is a dependent
Personal Injury - $15,000.00 protected ($30,000 if spouses filing jointly)
Wild Card – any personal property of the debtor up to $4,000.00 protected
Homestead – Personal Residence of the debtor $15,000.00 protected
Motor Vehicle - Up to $2,400.00 protected ($4,800 if spouses filing jointly)

If you would like to learn more about Chapter 7 bankruptcy and how it may benefit you, contact our firm today to talk to a skilled and dedicated attorney.