Chapter 7 Bankruptcy

Bankruptcy has become an increasingly common solution to financial problems. Many individuals and families who did very well over the years are finding it difficult, if not impossible, to keep their heads above water - let alone meet debt obligations. When credit scores plummet, debt collection calls or threats mount and the prospect of being able to pay off debt diminishes, the option of filing for bankruptcy should be seriously considered. The first two questions to ask are:

• Am I eligible to file for bankruptcy?
• Which form of bankruptcy should I file for and what do they mean?

These questions are best answered by a seasoned bankruptcy attorney. At The Fox Valley Legal Group, we have helped countless individuals and families find solutions to their financial problems. While bankruptcy can be a highly effective resolution, it is not the only option and at your initial consultation, we will explore all the options to find the right one for you.

What is Chapter 7 Bankruptcy?

In this usage, the word "Chapter" simply refers to a part of legal code dealing with such filings, just like a chapter in a book.  This sets apart specific content from other content.

If you file Chapter 7 bankruptcy, you are able to eliminate much, if not all, of your unsecured debt such as credit cards, medical bills and various types of loans. Tax debts and student loans are not eliminated by a Chapter 7 filing and you will still have to pay those. There are some exceptions to these types of debts but it is best to discuss this specifically with your lawyer.

Under this type of filing, you can keep your home and other secured loan items, such as a car, but you will have to continue to pay those loans as agreed. If for some reason you are unable to keep those secured items, then arrangements can be made to return the item or property to the lender. This type of filing is best for those with significant amounts of unsecured debt who wish to keep their secured possessions.

Chapter 7 bankruptcy has specific income eligibility requirements as well as set amounts of excluded assets that can be retained. These can be readily determined by a lawyer during your initial consultation.

Find out now if you qualify to eliminate much of your unsecured debt through a bankruptcy filing.  Contact The Fox Valley Legal Group  for a full review of your situation and an explanation of your options.