Are you drowning in debt? Are you struggling to make your minimum monthly payments on your credit cards? Do you have unpaid credit cards, medical bills, or judgment from a lawsuit? Are your currently suffering from wage garnishment? Have you considered bankruptcy relief? The bankruptcy laws can provide help to individuals sometimes stopping foreclosure, wage garnishment, and providing individuals with the fresh start that they need. If you feel that bankruptcy relief is the appropriate option for you contact our office at 815-455-4755 for a free no obligation initial consultation to discuss your case.
Filing bankruptcy may be a solution to your legal problems, but it is not for everyone. When deciding whether bankruptcy is right for you, it is a good idea to look at reasons for and against why you may want to file bankruptcy.
Reasons to File:
Reasons Against Filing:
Protections if you File:
Once you file bankruptcy, all collection activity by your creditors or collection agencies MUST
Stop. Foreclosures and repossessions cannot go ahead unless the Bankruptcy Court gives its
However, there is an exception if you have filed for bankruptcy before and the case was dismissed in the previous year. In such cases special rules apply to the automatic stay.
After a bankruptcy is filed and your debts are discharged, you can start to rebuild your credit by practicing good management.
When you file a bankruptcy case, all of your property comes under the jurisdiction of the bankruptcy court. This means that your property will be the property of the “bankruptcy estate”. No creditor can sell, seize or exercise any control over your property without permission from the bankruptcy court. This is true even if a creditor has a lien on the property. You cannot sell or transfer the property without permission from the bankruptcy trustee or the court.
Creditors and Bankruptcy
A creditor is a person or source that you owe money or property to. There are two kinds of creditors involved in a bankruptcy who you may owe this money or property to: Secured and Unsecured.
Secured creditors are those who have the right to get their property back if they are not receiving payment for it: Some examples include:
An unsecured creditor is one who has no right to the return of any property no matter how much is owed. Some examples include:
In a Chapter 7 bankruptcy, you receive a “discharge” of most of your debts. A “discharge” is a court order that says certain debts are cancelled and you no longer have to pay the debt. Most debts are discharged, or cancelled. However, there are some debts that are not dischargeable in a Chapter 7 bankruptcy. These debts must still be listed on the bankruptcy schedules, but they cannot be wiped out:
Debts that cannot be discharged include:
In a Chapter 7 bankruptcy, there are certain types of property that cannot be taken from you. This property is called “exempt”. You can keep exempt property as long as it is not subject to a lien (a mortgage security interest).
The major types of exempt property are:
Chapter 7 bankruptcy stops garnishment of wages or other income for any debts other than child support or alimony.
There are certain things a Chapter 7 bankruptcy cannot accomplish, such as: