How does one go about filing for bankruptcy through a Zion bankruptcy attorney? The first step that one must take when filing for bankruptcy is to consult with an experienced bankruptcy lawyer in your area. The bankruptcy lawyer will meet with you, interview you, and explain to you all the details concerning filing for bankruptcy. You may qualify for a Chapter 7 fresh start bankruptcy, or you may qualify for Chapter 13 reorganize. In either case, bankruptcy provides a specific amount of protection and there are rules and regulations that must be followed.
When you meet with your Illinois bankruptcy attorney, the bankruptcy attorney is going to interview you. The interview is an attempt to determine what you have in terms of assets, what you have in terms of liabilities, what your income and expenses are, and what your basic financial picture is. Depending on what your financial picture is will help the attorney recommend a particular type of case.
If you are someone who has very little in the way of assets but who has a lot of debt, you are more likely than not going to be interested in a Chapter 7 bankruptcy case. Filing Chapter 7 bankruptcy is known as the fresh start. Chapter 7 allows for the elimination of medical bills, credit card bills, personal loans, utility bills, debts for any type of service, while you get to keep whatever personal property that you have. You can keep a house and you can keep a car while still filing for Chapter 7 bankruptcy, although there limits on how much equity or ownership you can have in those items. In the state of Illinois, you can have equity up to $15,000.00 in a piece of real estate. The Illinois exemption amount of $15,000.00 per person can be doubled in a joint filing husband and wife to protect up to $30,000.00 worth of equity in piece of real estate. With regard to automobiles, an individual gets a $2,400.00 exemption. If it’s a joint case, the exemption can double to $4,800.00 of protection in one vehicle. In addition to the exemptions that I just mentioned, an individual in Illinois is allowed a $4,000.00 miscellaneous, wildcard exemption. That wildcard exemption can be sprinkled over any type of personal property to protect it. If we’re talking about a joint case husband and wife, the wildcard exemption doubles to $8,000.00. So when you’re thinking of filing for Chapter 7 bankruptcy, you can very often keep a house and a car and still eliminate your debt. The fact that you have a house does not mean that you have to file Chapter 13 bankruptcy. In fact, most people who file for Chapter 7 bankruptcy have houses and cars.