Lyons Bankruptcy Attorney describes Chapter 7 bankruptcy?Chapter 7 bankruptcy is bankruptcy that is going to allow a person to get a fresh start and completely eliminate most of their debt. Most of their debt includes unsecured debt and secured debt. The most common debts that are eliminated in a Chapter 7 bankruptcy are credit card bills, medical bills, payday loans, utility bills, car repossessions, and certain taxes. Some of these taxes are IRS taxes that are due and in some circumstances, real estate taxes. Chapter 7 is also going to eliminate your secured debt which is in most circumstances a car loan.
Filing Chapter 7 bankruptcy is a great way for a person to really get a fresh start because if someone qualifies for a Chapter 7, they will be able to completely eliminate and discharge their debts. Discharge is the legal term that means that a person will no longer be personally liable for the debt that is owed to a creditor. Not only will they not be personally liable, but the creditor will not be able to call the person or have any communication whatsoever in an attempt to collect the debt. Furthermore, if a creditor continues to call or communicate with a person regarding debt that is owed to the creditor, then that is a violation of the bankruptcy discharge order and monetary sanctions can be imposed on the creditor.
Chicago bankruptcy Chapter 7 is a liquidation analysis where the person who is filing for Chapter 7 would have to liquidate certain assets that they have if those assets cannot be protected through ways of exemptions for the person. These exemptions are pretty high and in most circumstances, a person coming into file a Chapter 7 will not have assets that cannot be protected. A common question is if someone’s 401(k) will be protected or someone’s pension or income from some kind of retirement account if that is subject to liquidation by the trustee. The answer to that question is your 401(k) and target accounts are 100% protected from the trustee.
So it’s very important for a person who is thinking about filing a Chapter 7 Illinois bankruptcy case to fully disclose all the assets that he or she may have. It’s important to have this relationship with your attorney to be able to be completely honest and disclose all information that the attorney is asking for.
If you do qualify for a Chapter 7 bankruptcy, then the process will usually last about 90 to 120 days from the time of the filing of the case. So the process is pretty short and after the process is over, you will receive a discharge of bankruptcy and that discharge order will completely eliminate the debts that were incurred by the debtor. So Chapter 7 is a bankruptcy that will give the person a brand-new and fresh start with their finances and in turn, will give them a fresh start with their new life.