Chapter 7 bankruptcy is a complete fresh start bankruptcy and can be prepared by a Calumet Park bankruptcy lawyer. In Chapter 7 bankruptcy, you are saying to the court, I really have no money to pay my creditors back anything. In Chapter 7, you only can do once every eight years and it is complete forgiveness of all or most of your debt. The only debts that will not be eliminated in Chapter 7 bankruptcy are student loans, tax debt and domestic support obligations.
A Chapter 7 bankruptcy is appropriate for dealing with items like credit card debt, medical debt, personal loans, cash advances, payday loans; really any matter of unsecured debt that you have. Chapter 7 will allow you to keep your home as long as you continue to make the mortgage payment and your car, assuming you can continue to make the car payment. Chapter 7 is a great option when someone falls behind and just needs a fresh start.
Once your case is filed, you have technically decided to claim bankruptcy. Thus, the automatic stay simply put is the bankruptcy protection that you are afforded by filing bankruptcy. Once you file your case, the automatic stay goes into place immediately. This means no one can sue you, no one can garnish your wages, no one can place a lien on your property, and all of the harassing phone calls that you have been receiving have to stop. The automatic stay remains in place through the duration of your bankruptcy and will only and upon the completion of your case.
If you wind up filing for Chapter 13 instead, there are different procedures. Primarily, in Chapter 13, you are making a payment plan over a course of months or years. Basically, you should start making your first plan payment right as your case is filed. This will do two things; this will put you off on good standing with the trustee and may confirmation go easier. Technically, your first plan payment is not due until 30 days after you file your case. If you file the case on the first of the month, your first plan payment will be due on the first of the next month. Plan payments need to be made in certified funds made out to the trustee which you should have to your attorney before your case is filed, the first plan payment that is. If you fail to make your payments, your case will be dismissed by the trustee at some point for failure to pay. This is all information that you will receive from your Chicago bankruptcy attorney.