DuPage County Chapter 7 Bankruptcy Lawyers
Debt-Relief Attorneys for Chapter 7 Bankruptcy in Chicago, Joliet, Wheaton, and throughout the Area
Owing a significant amount of money to a creditor can wreak havoc on an individual's life. However, filing for bankruptcy can provide some debt relief while giving debtors the opportunity to repay some or all their debts. Chapter 7 of the bankruptcy code is just one type of bankruptcy debtors can use to make payments to their creditors.
When a debtor files for Chapter 7 bankruptcy, the debtor's nonexempt property is sold and the proceeds of the sale are given to creditors. Any individual or business qualifies for Chapter 7 bankruptcy. Filing for Chapter 7 bankruptcy ends debt collection actions against the debtor for a short period of time. During this time, creditors may not garnish the debtor's wages, contact the debtor to demand payments, or file a lawsuit against the debtor.
Filing for any form of bankruptcy is a complex legal process. Ensuring you have all required documents and paperwork when filing for bankruptcy can be a difficult, tedious, and often confusing process for many. The skilled bankruptcy lawyers at the Davi Law Group understand the process of filing for bankruptcy and can effectively represent your interests and goals in bankruptcy court.
Process of Filing for Chapter 7 Bankruptcy
In order to file for Chapter 7 bankruptcy, the debtor who has mostly consumer debt must receive credit counseling 180 days prior to filing. Then the debtor must also file with the court a list detailing his or her liabilities, current income, expenses, assets, unexpired leases, and contracts. Individuals filing for chapter 7 bankruptcy are also required to provide the case trustee with tax returns for the most recent tax year.
The bankruptcy court will charge the debtor a $245 case filing fee, a $15 case trustee charge, and a $75 administrative fee. The debtor must complete the Official Bankruptcy Forms, and in order to do so, the debtor is required to submit a list of all creditors and their claims, a document detailing the debtor's property, and a schedule of the debtor's monthly living expenses.
Chapter 7 Bankruptcy Exemptions in Illinois
Chapter 7 bankruptcy allows debtors to keep some exempt property, and the case trustee will liquidate the debtor's remaining property and assets. It is important to keep in mind that debtors may lose property when filing for Chapter 7 bankruptcy. Before filing for Chapter 7 bankruptcy, you should understand the other forms of bankruptcy you may be eligible for, such as Chapter 13 bankruptcy.
Illinois does not honor federal bankruptcy exemptions. Debtors who are filing for chapter 7 bankruptcy in Illinois may only use state bankruptcy exemptions. Some Illinois bankruptcy exemptions include:
- Homeowners can exempt up to $15,000 of their home and other personal property.
- Debtors can protect up to $4,000 in items and personal property (including funds in bank accounts).
- Debtors can protect a motor vehicle that has an equity of up to $2,400.
- Debtors filing for chapter 7 bankruptcy can protect up to $1,500 worth of tools of trade, professional books, and health aids prescribed by doctors.
- Debtors can pursue income exemptions such as social security, public aid, unemployment insurance, and other types of government aid.
Committed Warrenville Bankruptcy Lawyers
While it is legal to represent yourself in bankruptcy court, it is not advisable you do so. Bankruptcy has significant financial and legal ramifications. Therefore, you should consult an experienced bankruptcy attorney at the Davi Law Group who can assess your financial situation, determine the best course of action, and then represent your interests well in court.
If you are facing debt and are wondering if Chapter 7 bankruptcy is right for you, call us at 630-580-6373 or contact us online. We serve clients in Wheaton, Joliet, Chicago, and throughout northern Illinois.