What is Chapter 7 Bankruptcy?
Filing for Chapter 7 is one way for individuals to regain control of their life when their debts have become unbearable. It is a type of liquidation bankruptcy that can eliminate most unsecured debts without the creation of a payment plan. Unsecured debts can include credit card debt, utility or medical bills, IRS debt, wage garnishments, and payday or personal loans.
When you file, creditors are legally obligated to cease contacting you about your debts, which is a large relief to most people who have been struggling to make payments. A case trustee appointed by the court will meet with you and your lawyer to fill in details about your financial picture and property. Many types of assets are exempt, but those that are not may be liquidated to help cover your debts.
Who is a Good Candidate for Chapter 7?
Individuals with little to no income, including those who have lost their job or are unable to work, may be ideal candidates for Chapter 7. This option could be worth considering if you are barely able or unable to afford the necessities of life, much less unsecured debt payments. At the Law Offices of Ivan Rueda, we know that being harassed by creditors sending a constant stream of notices and calls only makes things worse, and it is worth considering filing for Chapter 7.
This type of bankruptcy may be ideal for people with little or no large assets, such as renters or homeowners with little equity invested into their property, as any qualifying assets will be evaluated and liquidated. While assisting clients through Chapter 7 proceedings, our team will seek out any and all ways for you to reaffirm ownership of your items. If you have no sizable, qualifying assets, your debtors will collect nothing.
Contact Us
Being harassed by creditors can lead you to feel exhausted and intimidated. It’s important to have legal counsel on your side while you navigate your options for resolving your debt. Whether you’re looking for a bankruptcy, immigration, or personal injury lawyer in Chicago, please reach out to our office for a free case evaluation.
