CHAPTER 7 BANKRUPTCY LAWYERS WORKING TO PROTECT CONSUMERS
If you’re unable to pay your debts, and if you’ve been thinking about bankruptcy, a Chapter 7 bankruptcy attorney at the Chicago Consumer Law Center can review your circumstances and offer you some personalized bankruptcy advice.
While we look for ways to help people avoid bankruptcy, sometimes a bankruptcy is the best choice for someone to get rid of their debts and get a new start on life with a clean slate.
We routinely provide bankruptcy advice to consumers throughout the Chicago area. The language of bankruptcy can be confusing, so before we explain the details of a Chapter 7 bankruptcy, these brief definitions of some key terms and phrases may help.
Chapters 7 and 13 are the sections of the bankruptcy code that govern personal bankruptcies. A Chapter 7 bankruptcy (also called Liquidation Bankruptcy or Straight Bankruptcy) is the type of personal bankruptcy most frequently used by consumers in the Chicago area.
WHAT DOES A CHAPTER 7 BANKRUPTCY ACCOMPLISH?
A Chapter 7 bankruptcy is mainly for people with no monthly income or a monthly income that’s insufficient to pay their debts. You must pass what’s called a “means test” before you can qualify for a Chapter 7 bankruptcy. If your income is too high, you may have to file for a Chapter 13 bankruptcy instead. In a Chapter 13 bankruptcy, you would make manageable monthly payments over 3 or 5 years and then the balance of the debt is discharged.
A Chapter 7 bankruptcy wipes out most of your unsecured debts without the need to pay back balances through a repayment plan. Unsecured debts are debts such as:
- medical debts
- credit card debts
- automobile repossessions
- a deficiency judgment from a home foreclosure
- most lawsuit judgments
Let an attorney at the Chicago Consumer Law Center help you through the means test. We do this routinely for people in all walks of life in the Chicago area. If you qualify for a Chapter 7 bankruptcy, one of our attorneys can guide you through the bankruptcy procedure.
ARE YOU HARASSED BY CREDITORS OR DEBT COLLECTORS?
Filing a Chapter 7 bankruptcy will stop all the phone calls, letters, emails and texts about the debt. When you file for a Chapter 7 bankruptcy, the bankruptcy court issues an order called an “automatic stay,” that takes effect immediately. The automatic stay stops creditors and debt collectors from contacting you.
At the end of the Chapter 7 process, the court will discharge (that is, wipe out) your unsecured debts, but you should know from the start that a Chapter 7 bankruptcy will not discharge secured debts such as child support, student loans, and tax debt.
HERE’S HOW TO CONTACT THE CHICAGO CONSUMER LAW CENTER
A Chapter 7 bankruptcy can be a confusing and time-consuming process. If you’re considering personal bankruptcy, or if you have questions and need to learn more, it may be time to speak with us at the Chicago Consumer Law Center.
Do not make a decision about bankruptcy in haste. Instead, you should make an informed choice with the help of an experienced Chapter 7 bankruptcy attorney to see if bankruptcy is right for you. If your personal debts are overwhelming you, don’t wait.
To arrange a free Strategy Session – with no obligation – complete the brief contact form here on our website, or call (312) 858-3240. At the Chicago Consumer Law Center, we’ve helped consumers throughout the Chicago area get a fresh financial start, and we are ready to help you.