Chapter 7 Personal Bankruptcy Archives

Are you eligible for Chapter 7 bankruptcy?

While you may have considered filing for Chapter 7 bankruptcy as a way to wipe out some of your extensive debt, not all people are eligible for this form of debt relief. At Ledford, Wu and Borges, LLC, we know that in order to qualify for this chapter of bankruptcy, Illinois debtors must meet certain criteria.  

What you should know about reaffirming debt

Filing for Chapter 7 bankruptcy can be a complicated and emotional process, especially when you are faced with decisions that may seem overwhelming. Although people who file for this type of bankruptcy are able to wipe out much of their debt, they run the risk of having some of their property and/or possessions reclaimed by a trustee who is appointed to the case.  There are ways, however, of keeping some of your property, such as your home or vehicles, through loan reaffirmation in Illinois.

Prison debt may be discharged under certain conditions

In a Chapter 7 bankruptcy, people are able to discharge much of their debt and start fresh with a clean financial slate. There are some expenses, such as school debt and child support, that can not be wiped free from the list of owed debts. Other expenses that are not eligible for discharge include penalties and fines that are given by a criminal court of law. In some cases, however, certain situations in Illinois may be difficult to discern whether the debt is criminal in nature. One case showed how even though a debt is connected to a prison does not always mean that it is exempt from bankruptcy.   

What is the meeting of creditors in a Chapter 7 bankruptcy?

Whether you have already started the process of filing for bankruptcy or you are simply gathering more information about the process, it is important that you know about the meeting of creditors. This mandatory meeting is essential for all who file for Chapter 7 bankruptcy in Illinois or anywhere else across the nation. Since declaring Chapter 7 bankruptcy may ultimately end in full discharge of your medical expenses, credit card debt and other unsecured loans, the creditors involved in the case are given an opportunity to state their case and ask questions before the court-appointed trustee.

Not all debt can be discharged in a Chapter 7 bankruptcy

Liquidation bankruptcy offers a way for people to climb out of an overwhelming pile of debt and expenses. Otherwise known as Chapter 7, this form of bankruptcy gives people the opportunity to wipe their financial slate clean and gain a fresh start. Despite what some people may think, however, not all debt may be eligible for discharge through a Chapter 7 bankruptcy in Illinois. According to the U.S. Courts, there are certain expenses that may remain on a debtors list of financial obligations, even after the bankruptcy becomes finalized.

What is the role of a bankruptcy trustee?

When you are filing for personal bankruptcy, you will most likely be assigned a trustee. This person will have certain responsibilities based on whether you file for Chapter 7 or Chapter 13 bankruptcy in Illinois. These tasks will all revolve around what is known as the bankruptcy estate, or the property that you own at the time of the filing.

What happens during a debtor education class?

If you have recently explored filing for personal bankruptcy, you may have discovered that you will have to take a credit counseling and debtor education course. There is a good reason for doing so, as it can give you the skills you need to ensure that you can maintain your finances following the bankruptcy.

Chicago workers may have to seek wages in bankruptcy court

There are many reasons that a business owner in Illinois may have to seek bankruptcy protection. Slow sales and rising costs, for example, can lead to someone filing for bankruptcy. Some owners, however, engage in illegal activity and wind up owing creditors and even their own employees, as one recent incident illustrates.

The relationship between student loans and bankruptcy

Student loan debt is a widespread issue. In regard to students who earned a degree from either a nonprofit or public college in 2014, approximately seven in 10 had debt. According to the Institute for College Access and Success, the average amount of student loan debt has increased at more than double the rate of inflation. In Illinois, the average amount of debt for a graduating senior is $28,984.

The bankruptcy trustee explained

When people in Cook County file for bankruptcy, the court will appoint a trustee. According to the U.S. Department of Justice, every judicial district has a panel of private citizens who are appointed to serve in this capacity. They are referred to as panel trustees in matters concerning Chapter 7 bankruptcy. The trustee is essentially the person who handles the process of paying creditors after handling the liquidation, or sale of the filer’s assets. The trustee is also in charge of assembling the assets that are to be sold.

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