Kane County Bankruptcy Attorneys
Illinois Lawyers Serving Clients Declaring Chapter 7 Bankruptcy in DeKalb and Kendall Counties
The prospect of filing for bankruptcy can be daunting. Often, our clients feel embarrassed and overwhelmed, unsure of how to proceed and hoping to find a solution that will allow them to work towards a better and more secure future. For many of our clients facing these unfortunate financial circumstances, filing for Chapter 7 bankruptcy is the best option.
At Serrano Low & Hanson, attorney Stephanie K. Low provides representation to clients who are eligible for Chapter 7 bankruptcy and for whom that is the right decision; individuals seeking either Chapter 13 or Chapter 11 bankruptcy will be provided with referrals upon request.
What is a Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is often referred to as liquidation. The individual who files for this type of bankruptcy does not have to file an official plan with the courts. Instead, a trustee will help liquidate most of their assets and use the proceeds to pay the debts after reviewing the debts to determine which will be paid and which can be discharged.
Bankruptcy Advantages and Disadvantages
Bankruptcy is meant as a last resort that will give individuals a change for a fresh start. As such, the advantages of filing for bankruptcy only apply to those who have found themselves in a very unfortunate financial position. For those individuals, it can be advantageous to file for bankruptcy because:
- Collectors cannot continue to attempt to collect the debts – debts are either paid or discharged, and as such, harassment from debt collectors will cease.
- Debts are settled. Some are paid while others are discharged. Certain ones, such as child support or unpaid taxes, will not be affected by a bankruptcy filing. However, in most cases, setting the majority of debts allows our clients to feel a sense of relief.
There are also disadvantages to filing for bankruptcy. For example, a bankruptcy will stay on your record for ten years. As such, it will adversely affect your credit score and make it harder for you to secure loans and financing going forward. Additionally, you will be required to liquidate the majority of your assets.
Illinois law dictates what properties are exempt from liquidation after one files for bankruptcy in this state. Some of the assets you will be allowed to keep include up to $15,000 of equity in a home; up to $2,400 of equity in an automobile; and personal property up to $4,000 in value. It is important to fully understand the requirements and weight the advantages and disadvantages before choosing to file for bankruptcy, including Chapter 7 bankruptcy.
If you are interested in pursuing a Chapter 7 bankruptcy, contact Serrano Low & Hanson today at 630-844-8781630-844-8781. We will help you understand your options and choose the best course of action for your unique situation. Our clients can be found throughout Kane, Kendall, DeKalb and DuPage Counties including Geneva, Batavia, St. Charles, and South Elgin, and Campton Hills.