Chapter 7 Overview for Will County Residents: Chapter 7 bankruptcy also called liquidation bankruptcy cancels your debts. You may have to liquidate some of your property for the benefit of creditors in this process, but this very rare.
Chapter 7 can provide relief to people in difficult financial circumstances, millions of people a year use this approach. It helpful for people with high unsecured debts like medical bills, credit card debt and unsecured personal loans.
Most cases typical move quickly and stop creditors from taking any action against you.
Chapter 7 Bankruptcy filing accounts for as much as 65% of all Consumer banking filings.
Chapter 7 Bankruptcy is one of the faster ways of starting over finically if there are no objections from any of the parties involved. Most if not all debts will be discharged within months of the attorney filing a bankruptcy petitions. We can crunch the numbers for you and tell you whether or not you qualify for Chapter 7. It is important to hire a local Joliet bankruptcy lawyer.
Who Can File?
Chapter 7 is not for everyone, You won't be able to file for Chapter 7: If you have already received a bankruptcy discharge in the last 6 to 8 years, or based on your income, expenses, debt burden, you could realistically complete a chapter 13 repayment plan. Your Will County bankruptcy attorney will advise you of which bankruptcy, 7 or 13 is best for you.
What Happens to your property?
After the creditors meeting, if the trustee determines that you have some nonexempt property you may be required to either surrender that property or provide the trustee with its equivalent value in cash. If the property isn't worth much or would be cumbersome for the trustee to sell, the trustee can abandon the property which means you can keep it. Most of the time any property owned by most Chapter 7 filers, is either exempt or is worthless. Therefore few debtors end up having to surrender property.
If you pledged your property as collateral for a loan that would be a secured debt. If you are behind on your payments the creditor can have that automatic stay lifted in order to repossess or foreclose on your property. If you are current on your payments, you can keep these properties and keep making your payments.
At the End of the Bankruptcy Process
You debts are wiped out by the court except:
-debts that automatically survive bankruptcy-Child support, tax debts and student loans.
-debts that the court has declared non dischargeable because of the creditors objection-debts incurred by your fraud or malicious acts.