Chapter 7 bankruptcy · Des Plaines
A fresh start from credit card debt.
Chapter 7 can clear many credit card debts, medical bills and personal loans. We check whether you qualify and what happens to your property before you decide.
Flat fee. Payment plans. You work with me, no hand-offs.
A typical Chapter 7 case
3 to 4 months from filing to discharge.
Likely the least expensive solution. We go over the fee at your consultation.
What Chapter 7 is
A federal court order that erases your debt
Chapter 7 is a liquidation case under the U.S. Bankruptcy Code. On paper, a trustee can sell your unprotected property to pay creditors. In practice, Illinois law protects the things most working people own, so most of my clients keep everything and the trustee sells nothing.
Whether you qualify depends on your income, your expenses and what kind of debt you have. That is a short conversation, and we have it before you pay me anything.
The discharge
What Chapter 7 eliminates, and what it does not
The discharge wipes out most consumer debt. Congress kept a short list off the table, and we discuss which exceptions apply during your consultation.
#gone
Credit cards, medical bills, personal loans
Store cards, online loans, collection accounts, old utility bills, most judgments.
#gone
The car loan or mortgage you walk away from
Surrender the car or the house and the balance goes with it. Keep it, keep paying.
#stays
Child support, alimony, most recent taxes
Also criminal fines and debts from fraud. Some older income taxes can be eliminated. Ask.
#usually stays
Student loans
Eliminated only if you can prove real hardship to the court. It is rare, and I will tell you honestly whether you have a case.
Filing to discharge
A Chapter 7 case, start to finish
We file. The relief starts that day.
The automatic stay takes effect the moment the case is filed. Calls, lawsuits, garnishments and repossessions stop.
The trustee meeting, about a month later
Ten minutes of questions under oath, usually by phone or video now. I am with you. Creditors almost never show up.
The 60-day wait
You finish the second credit counseling course online. If you are keeping a car with a loan, we sign the agreement to keep paying it. In most cases creditors do nothing.
The discharge is entered. Case closed.
The court order eliminating your debt arrives by mail. A few days later the case closes. Most cases: under four months.
Do you qualify?
Three tests. Most working families pass all three.
We review these during your scheduled consultation.
1. The means test
The gateway to Chapter 7. If your household income is under the Illinois median for your family size, you are in. Over it, and there is a second calculation that many people still pass.See the income limits →
2. The totality of your circumstances
Can you actually pay your debts from what is left after real living expenses? If the honest answer is no, Chapter 7 is meant for you.
3. Good faith
You are filing because you need relief, not to game the system. Running up the cards right before filing is the thing to avoid. Tell me everything and we plan around it.
If Chapter 7 does not fit
Higher income, or property to protect? That is what Chapter 13 is for.
Chapter 13 — the repayment plan
Three to five years, one monthly payment sized to your budget. Stops a foreclosure, catches up a car, and the rest is often discharged at the end.
How the plan works →
Own a small business?
Sole proprietors and LLC owners have their own questions: the personal guarantee, the business debt, whether to keep the doors open.
Small business bankruptcy →
Questions I hear a lot
Straight answers about Chapter 7
Usually not. Illinois exemptions protect a set amount of equity in your home, your car and your belongings, and most of my clients are under those limits. If you are not, Chapter 13 is the tool for keeping the property. We check this before you file, not after.
There is one meeting with the trustee, about ten minutes, and I am there with you. Most people never see a judge.
The cards you list are closed. Most people rebuild credit within a year or two of the discharge, and the offers start arriving sooner than you would expect.
You can file Chapter 7 again eight years after the date your previous Chapter 7 case was filed. If it has been less than that, Chapter 13 may still be open to you.
Let's see whether Chapter 7 fits.
Call to arrange a consultation. We review the details at that meeting.