The Chapter 7 version of bankruptcy is the United States’ most common personal bankruptcy form. It is the most “widespread” category because it is relatively “direct” and “simple”. Also, it is not very expensive to perform. It also requires little time, ends quickly and, ultimately, you consumer debt is eliminated. But it is important to hire a Chapter 7 Bankruptcy Lawyer in Berwyn IL if you want to save money and time.
You’re eligible to declare Chapter 7 if:
* You do not have the income over the following several years to pay at least 25% of their unsecured debt
* You live or have property in the United States
* You have not declared Chapter 7 bankruptcy within the last six years, or
* Haven’t had a rejected bid for bankruptcy during the last 180 days.
Chapter 7 is also known as a “clearance procedure” or “straight bankruptcy”. This is because when you open a Chapter 7 bankruptcy case, the courts and you “settle”, in its entirety, meaning the court will sell all non-exempt property. The proceeds from that will go to paying back your creditors. What is this “non-exempt property” and how does it affect you? Hiring a Chapter 7 Bankruptcy Lawyer in Berwyn IL is vital at this stage.
Non-exempt property (Goods to be sold)
* Equity shares or bonds
* Money Market Funds
* Time deposits or certificates of deposit (CDs)
* Collections of value
* Holiday properties or those kept as investments
Exempt property (Goods that you may keep but are subject to local and state laws)
* Part of the equity of your home
* Retirement accounts (401(k) or some IRAs)
* Disability
* Social Security Income
* Income from unemployment insurance
* Public assistance (welfare)
* Alimony payments / child support payments
* Car
* Clothes
* Furniture
* Personal effects (e.g., jewelry, etc.).
Depending on the state you reside in, you can choose whether to use state or federal exemptions. You need to carefully review your options before making the decision to declare bankruptcy. One concern of most people is to keep their home. It is important to know that a Chapter 7 means you will not keep your home nor stop foreclosure. You must pay your mortgage on time during the bankruptcy proceedings. Keeping your home during a Chapter 7 bankruptcy is possible under something known as Homestead Exemption. Contact Schottler and Associates for more information.
