Hamilton & Antonsen
Chapter 7 bankruptcy in illinois
should i file for chapter 7 Bankruptcy?
During Chapter 7 bankruptcy, all of a person’s dischargeable debt can be erased. If a person has assets over certain threshold amounts, these amounts are collected by a bankruptcy trustee and applied toward the debt and paid to creditors.
Debtors often end up pursuing Chapter 13 bankruptcy in situations in which their assets are too high to qualify for Chapter 7 orthey have substantial assets that they would end up losing if they pursued Chapter 7.
Below are some additional details that parties should understand about the role that Chapter 7 bankruptcy in Will County, Illinois plays in taking control of a person’s debts.
Is Chapter 7 Bankruptcy a Good Fit for You?
The best way to approach Chapter 7 bankruptcy in Illinois is to decide whether this option is suitable for your situation. First, it is critical to determine if your dischargeable debt is substantial enough to warrant bankruptcy.
This means that the negotiation of payment plans would not be sufficient to take control of your debt. It is often recommended that parties have at least $10,000 in dischargeable debt before pursuing Chapter 7 bankruptcy. While many types of debt are dischargeable, other amounts including those related to child support and student loans are not.
If you have enough dischargeable debt that bankruptcy makes sense, it is a good idea to determine whether you have substantial non-exempt assets that you would be at risk of losing in Chapter 7 bankruptcy in Joliet, Illinois.
Filing for Chapter 7 Bankruptcy
The best way to begin filing for Chapter 7 bankruptcy is to participate in a court-approved credit counseling course. Often inexpensive, these courses can be completed quickly and rarely take more than a few hours. Following the completion of this course, parties obtain a certificate to file when beginning a Chapter 7 bankruptcy course.
Parties must then prepare and file a bankruptcy petition accompanied by the necessary documentation, which often includes a list of a person’s assets, liabilities, income, and expenses. Following the filing of a bankruptcy petition, a clerk of the court will arrange a date for a meeting of creditors, which the filer must attend.
What Happens During a First Meeting of Creditors?
A first meeting of creditors in a Chapter 7 bankruptcy in Illinois will involve you, your lawyer, and the Chapter 7 trustee, who is a lawyer appointed by the court to review your bankruptcy documents and maintain your case. Among other tasks, the trustee will determine if there are any non-exempt assets that you should collect.
While creditors are invited to these meetings, they rarely attend them. Often these meetings last for a brief time. Provided you do not have substantial non-exempt assets, the trustee will end the meeting by recommending a discharge.
Following this meeting, a person must attend a second online course addressing financial management. A person must also file a certification of completion. Creditors then have 60 days to object to a discharge of debt.