Chapter 7

Helping You File for Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the easiest type of bankruptcy for an individual to declare. Dixon & Johnston Law Office is the Chapter 7 law firm you can trust in Belleville, Illinois. Chapter 7 bankruptcy law can often help you keep all of your property thanks to exemptions allowed under state law. If you own more property than you can protect with a Chapter 7 bankruptcy, you can usually file a Chapter 13 to protect your excess assets. Most filers are able to discharge all of their unsecured debt, including medical bills, credit card debt, and payday loans. Filing for bankruptcy puts an immediate stop to creditor harassment and wage garnishment.

What Is Chapter 7 Bankruptcy?

Bankruptcy is a legal process for individuals or other entities who cannot repay their debts to creditors. Bankruptcy is a form of debt relief imposed by a court order. A Chapter 7 bankruptcy involves the liquidation and collection of non-exempt assets. The proceeds of those assets are distributed to your unsecured creditors. Your creditors are paid through the value of your non-exempt property and not by your income.  However, most individuals lose nothing and can protect all of their assets.  If any assets are in jeopardy, then we will explain alternatives such as Chapter 13 to protect your property.

Qualifying for Chapter 7 Bankruptcy

Our bankruptcy Chapter 7 lawyers can help you determine if you qualify for Chapter 7 bankruptcy. That means passing the means test. The means test is determined by comparing your income to the median income for a family of the same size in your geographic area. If you do not pass the initial means test, there is a more extensive test. If you do not pass either, you can still file for Chapter 13 bankruptcy. Our team of skilled attorneys can assist you throughout the process.

What Happens During Chapter 7 Bankruptcy?

If you opt to file for Chapter 7 bankruptcy, a Trustee will be appointed to your case.  An automatic stay will stop wage garnishments, car repossessions, foreclosures, telephone calls from creditors, and civil actions by those creditors.  If you cooperate fully with your Trustee, you should receive a discharge of your eligible debts.

What Debts Will Not Be Discharged in My Chapter 7 Bankruptcy?

Not all debts are discharged with the assistance of a bankruptcy lawyer for Chapter 7. The following debts are usually not discharged with a Chapter 7:

  • Student loans
  • Child support, alimony, or other domestic court orders
  • Debts incurred by false pretenses, fraud, or false representation, such as money, services, property, and more
  • Certain cash advances taken right before filing
  • Criminal fines and restitution
  • Personal injury from drunk or intoxicated driving
  • Fraud or intentional torts
  • Willful and malicious injury to a person or their property
  • Income tax debts and certain debts owed to government entities
  • Debts to a spouse, former spouse, or child-related to divorce or separation
  • Debts incurred to pay off non-dischargeable debt

Who Can File for Chapter 7 Bankruptcy?

Not everyone qualifies to file a Chapter 7 bankruptcy. Your income and expenses will be evaluated. The best course of action is to schedule your free initial consultation with Dixon & Johnston Law Office. We can review your case and recommend whether Chapter 7 or Chapter 13 bankruptcy would make the most sense for you.

Schedule Your Free Initial Consultation

When filing for Chapter 7 bankruptcy, you need a knowledgeable legal firm on your side. Don’t let the bankruptcy process confuse or scare you. The lawyers at Dixon & Johnston Law Office are here to explain all your options and find the right solution for you. Our law firm represents clients in communities like Belleville, IL, as well as throughout Southern Illinois and the Metro East region. Contact us today to schedule your free initial consultation.

**Information is consistent with Illinois bankruptcy regulations. Additional information regarding Chapter 7 bankruptcy for the state of Illinois can be found here.**