Chapter 7 is what most people mean when they use the word bankruptcy. It is the last resort for people burdened by debt, with no way to pay it off. The day you file for Chapter 7, an automatic stay goes into effect. Your life changes radically.
Suddenly, your creditors are required by law to back off. If they continue to harass you, the courts will take your side and order them to stop. It will call a halt to foreclosure, eviction and repossession. If creditors were engaging in bank account or wage garnishment, that stops immediately.
Bankruptcy does not have to be scary. In fact, it can be the most painless and immediate way to relieve yourself of your debt burden.
The Power Of Chapter 7
Chapter 7 allows you to obtain a discharge of unsecured debts, including credit card bills, lawsuit judgments, payday loans and medical bills.
Chapter 7 won’t discharge everything. It won’t discharge child support, school loans, taxes or secured debts like your home and car. But Chapter 7 allows you to keep these assets by continuing to make payments and filing a reaffirmation agreement with the court.
What Does The Means Test Mean?
Under bankruptcy laws enacted in 2005, in order to file for Chapter 7 bankruptcy, you must first pass a means test. The test is a series of three formulas to see if your income is low enough to qualify. Do not be discouraged. I have assisted many clients in filing for Chapter 7 even after other lawyers told them they did not qualify.
If you are unable to pass the means test, I can still help you obtain significant debt relief by filing for Chapter 13 bankruptcy.
More Than 30 Years Of Experience
At the Law Office of Paul R. Idlas in Chicago’s north suburbs, I help clients obtain the relief they need through the bankruptcy process. I have more than 30 years of experience helping the people of northeastern Illinois file for bankruptcy. I serve clients throughout the region, helping them build strong new financial structures.
How To Contact Me
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.