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What is Chapter 7 Bankruptcy?

by | Mar 22, 2013 | Lawyer

When you consult with bankruptcy lawyers in Naperville, one of the options you may be presented with is Chapter 7 bankruptcy. Chapter 7 bankruptcy is considered complete liquidation of assets to repay your debt and should not be entered into without great consideration. You may be surprised to learn that over one million U.S. Citizens file for bankruptcy each year. While no one wants to file for bankruptcy, it can be an option to consider when you have exhausted all other options.

Why would you consider Chapter 7 bankruptcies as an option? As bankruptcy lawyers in Naperville will explain during your consultation, a Chapter 7 bankruptcy can allow you to have a fresh start when financial burdens and obligations become overwhelming. Your non-exempt assets are sold to pay off creditors. Most unsecured debts are eliminated with a Chapter 7 bankruptcy filing. Chapter 7 filing can also effectively stop debt collection activity, repossessions, foreclosures and wage garnishments. There are some exceptions to debt that will be eliminated under Chapter 7 such as student loan debts, alimony, child support or federal tax debt.

If you intend of filing Chapter 7 bankruptcy, it is likely you will have to attend an approved credit counseling program. Rules vary from state to state, but generally, this credit counseling course should be completed at least six months before filing Chapter 7 bankruptcy. How much does Chapter 7 bankruptcy filing cost? The costs can vary , but many legal firms will let you file for as little as a $100 down payments. Sometimes, if you qualify, the court may waive your filing fees.

Your attorney will be asking you a lot of questions when you file for Chapter 7 bankruptcy. He will need information about all your debts, your assets and your income. The attorney must present this information in a schedule to the bankruptcy judge. After filing, your creditors are invited to attend a meeting where they may ask your questions regarding financial matters. After filing for bankruptcy, a trustee will be appointed to disburse funds to your creditors from the liquidation of your assets.

With Chapter 7 bankruptcy, you may be allowed to keep you home, household belonging, jewelry, your car and other personal items. The laws vary from state to state, but certain person property is exempt from liquidation during Chapter 7 bankruptcy.

Your bankruptcy lawyers in Naperville will explain to you that while bankruptcy is not an easy solution, it can be an answer to mounting financial debt when you have exhausted all other options. If you are in debt and don’t know where to turn, you should schedule a free consultation to discuss your options.

Bankruptcy lawyers in Naperville can explain to you all the debt management options you have including Chapter 7 bankruptcy. While financial burdens can seem overwhelming, your attorney will work tirelessly to help you find the best financial solution. Chicago Debt Solutions has 5 convenient metro area locations to serve you. Julie Trepeck is a skilled attorney with extensive experience and legal knowledge of bankruptcy laws. She can assist clients in all stages of debt problems and help them find a solution. For more information or to schedule your free debt solution consultation, you may visit the website http://www.chicagodebtsolutions.com/ or call 312.445.9106. You can also visit them on Facebook for more information.

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