Chapter 7 Bankruptcy in Dupage County

If you are struggling with too much debt in relation to your income, Chapter 7 bankruptcy could be a legal solution to your dilemma. This is often the quickest and easiest form of bankruptcy. It involves the surrender of all non-exempt assets to the court. The assets are sold, and the proceeds are used to pay creditors. In many cases, however, there are no non-exempt assets to sell. Unsecured debt, such as credit cards, medical bills, utility bills, and payday loans can be discharged. Creditor harassment, or any debt collection effort, is immediately prohibited when you file Chapter 7. The experienced Dupage County bankruptcy lawyer at Joseph P. Doyle can help you decide if this is the right step for you.

Chapter 7 Bankruptcy Lawyer: Commitment to Clients

Under federal law, to qualify to file Chapter 7, you must first pass a means test. This is a two-step process to determine if you have the means to pay your creditors. In the first step, your income is compared to the median income in your state for families the same size as yours. In the second step, your disposable income is calculated by deducting certain necessary expenses from your income. If your income is too high to qualify under the first step, you still may qualify under the second step, depending on your disposable income. Our law firm will provide an initial consultation, to help you evaluate your options and make an informed decision.

Protected Assets in a Chapter 7 Bankruptcy

Certain assets are exempt from liquidation in a Chapter 7 under Illinois law. This protection can include your residence (protection up to $15,000), your car (protection up to $2,400), other personal assets (protection up to $4,000), and certain types of personal belongings. It can also include child support or alimony, college savings accounts, unemployment or Social Security benefits, and personal injury payments (protection up to $15,000), among other assets. It is important to work with a lawyer who is knowledgeable about available exemptions under Illinois state law. Contact our law office for expert guidance in this crucial step of the process.