You Got Chapter 7 Bankruptcy!
Based on your quiz responses, we think Chapter 7 Bankruptcy may be the best option for you.
Chapter 7 Banktupcty is a tried and true method for liquidating debt and getting a fresh start. If you'd like to learn more about how Chapter 7 could change your life, contact us for a Free, No Pressure, No Obligation Consultation.
To learn a bit more about how Chapter 7 Bankruptcy can help you, read on to learn a few of its top benefits.
10 Benefits Of Chapter 7 Bankruptcy
- End Creditor Harrasment. Creditors call at almost all times of the day and night, and the weekend as well. The automatic stay in bankruptcy law makes it illegal for creditors to continue those calls or any other form of harassment the moment you file for bankruptcy.
- Keep Your House and Car. As long as you don’t have too much equity in your home – and if you had a lot of equity you likely wouldn’t be filing bankruptcy – and foreclosure proceedings have not been initiated, you keep the house. As for your car, there are exemptions that provide protection, depending on the value of the vehicle.
- Protect Most of Your Household Possessions. Exemptions exist that block what a bankruptcy trustee can seize. They typically cover all household goods and tools of a trade. Even if you have valuable jewelry or electronics, they often are not seized because of their age and condition. In fact, in 90 percent of all Chapter 7 cases, no property at all is seized!
- Eliminate Unsecured Debt. The amount you owe on credit cards or any debt that isn’t backed up by collateral can be completely liquidated if you qualify for Chapter 7 Bankruptcy. The only payment an unsecured creditor receives in a Chapter 7 bankruptcy is a portion of the value of any seized property. But in most cases, there is no seized property.
- Help with Secured Debt. With no more secured debt, paying the monthly mortgage and auto loan becomes much easier. For many debtors, spiraling unsecured debt eventually makes it impossible to pay all creditors every month.
- Two Ways to Qualify. There's an income limit with Chapter 7. But if you earn more than the median salary in your state, you can still qualify for Chapter 7 bankruptcy through a Means Test, which is a process to determine if you have any leftover income at the end of the month to pay unsecured creditors. Depending on your salary, if there is little or no money left over at the end of the month, you may qualify for Chapter 7 bankruptcy.
- You May Never Need to See the Bankruptcy Judge. There is one mandatory appearance before the bankruptcy trustee during the Chapter 7 creditor’s meeting. While it’s possible questions from the trustee or creditors could lead to a hearing before in bankruptcy court, the overwhelming majority of cases do not involve court appearances.
- Take a Deep Breath! While you wait to find out if you qualify for Chapter 7, you have the opportunity to relax a little from the financial pressures. The automatic stay stops any harassing calls and you do not have to pay your unsecured creditors while in bankruptcy.
- It's Fast and Easy. If there are no complications, a Chapter 7 bankruptcy case can be over in as little as 4 to 6 months. In Chapter 13 bankruptcy, most debtors are under bankruptcy court supervision for 5 years.
- Start Over More Quickly. The fact that Chapter 7 doesn’t require a length repayment plan like Chapter 13 means you can begin changing your financial habits and re-establishing your credit much more quickly with Chapter 13.
Why Not Chapter 13 Bankruptcy?
Based on your answers, Chapter 13 Bankruptcy doesn't look like the best option for you. Chapter 13 is best for people who exceed Chapter 7 income requirements and who wish to get on a reduced repayment plan to clear debt. In Chapter 13, you file a bankruptcy petition and proposed payment plan with court, which typically provides interest-free payments over a 3 to 5 year period. Payments are made from remaining disposable income, which allows you to retain your assets.
It's best not to rule out this option, however, until you've consulted with an attorney about your eligibility for either Bankruptcy chapter.
Free Initial Bankruptcy Consultation and Reasonable Fees for Illinois Residents
Determining the best course of action is the first step to eliminating your debt, and at Suburban Legal Group PC, we’d love to help! Our bankruptcy attorneys are sensitive to the difficult time you’re facing and we offer Chapter 7 Bankruptcy and Chapter 13 Bankruptcy filing services to Chicago area residents at reasonable fees to help you through this challenging time in your life.
Our goal at Suburban Legal Group PC is to change your financial future. Request a Free, No Obligation Bankruptcy Filing Consultation Today.