Will I Lose My Property If I File?
Chapter 7 bankruptcy in Chicago involves liquidating a debtor's nonexempt assets. In this situation, the trustee will take possession of the debtor's property and liquidate any unprotected assets. During this process, the assets will be sold, and funds will be paid to creditors. Under the bankruptcy code, the debtor can retain certain basic assets, exempt property.
Below are properties that might be exempt from bankruptcy:
- Whole Life Insurance
- Personal Injury Payment
- Wild Card
- Motor Vehicle
- Pensions and Qualified Retirement Plans
- Alimony and Child Support
- Social Security, Unemployment, and Public Assistance
- Workers' Compensation
- Illinois College Savings Pool Accounts
- Certain Personal Items (Clothing, School Books, Family Photos)
Stop Creditor Harassment and Protect Your Assets
Filing for Chapter 7 bankruptcy can provide you with immediate relief from creditor harassment. Once you file, an automatic stay is put in place, preventing creditors from contacting you, garnishing your wages, or repossessing your property. This allows you to regain control of your finances and focus on rebuilding your future.
Our experienced bankruptcy attorney, Joseph P. Doyle, can guide you through the process and help you understand which assets you can keep.
Benefits of Chapter 7 bankruptcy:
- Elimination of most unsecured debts, such as credit card debt and medical bills
- Opportunity for a fresh financial start
- Relief from creditor harassment and collection efforts
- Protection of exempt assets
- It is a relatively quick process, typically lasting a few months
The Cons of a Chapter 7 Bankruptcy
You cannot keep your credit cards, and you will lose property not exempt from sale by the trustee, in addition to other luxury items that were not exempt.
If you declare bankruptcy now, it will be harder to declare it later if you find yourself in an even worse financial situation. Make sure that filing for a Chapter 7 bankruptcy is necessary. Once you file a Chapter 7 bankruptcy, you cannot file again under that chapter for another eight years.
If you previously filed a Chapter 13 bankruptcy and less than 70% of your unsecured debt was paid to creditors in good faith, you must wait six years before filing a Chapter 7 bankruptcy.
What Type of Debt Relief Is for Me?
There is only one way to know whether or not filing for bankruptcy is the right choice for you: to discuss your options with a Chicago bankruptcy attorney to understand the benefits and disadvantages of each fully. If you initiate the Chapter 7 bankruptcy process blindly, you could be in trouble later. At our firm, we fully understand the scope of bankruptcy law and can even dispel some common bankruptcy myths you may have heard.
Contact Attorney Joseph P. Doyle today to schedule a consultation with our Chapter 7 bankruptcy lawyer in Chicago!
- Chapter 7 Bankruptcy - Prefiling Requirements
- What is a 341 Meeting of Creditors?
- Converting From a Chapter 13 to a Chapter 7
- Key Differences Between Chapter 7 and Chapter 13