Filing for bankruptcy is never a pleasant experience, but with a professional attorney by your side, the process can be simplified. Here are some things you need to know about filing for Chapter 7 Bankruptcy.
If you file for bankruptcy in Illinois, you can make sure some of your property remains safe with certain exemptions. For instance, when you file Chapter 7 bankruptcy, the trustee can sell off property that is not exempt and use the money to pay off creditors, utility bills and loans. However, before you opt for this, you should determine whether it makes financial sense for you. Here are some questions you should ask yourself:
- Will you have to give up property you would like to retain?
- Will filing for Chapter 7 Bankruptcy give you enough funds to make it beneficial for you?
- Can your creditors take your property or income, even if you don’t file for bankruptcy?
The answers to these questions will help you figure out whether filing for this bankruptcy benefit you, or if you are better with the alternative, i.e. Chapter 13.
If you think you can file, you need to submit some forms with the bankruptcy court. These documents will require the following information:
- Your debts, properties, current income and monthly living expenses.
- Property you own and the funds spent in the last two years.
- Property you sold or gifted during the last two years.
- Property you can retain legally, i.e. those that are exempt. This can be your home, furniture, clothing, your car, etc.
You will also have to pass a means test if you decide to go with this bankruptcy. In other words, if your disposable income is high, the Bankruptcy Code will determine you should opt for the Chapter 13 plan so some of the funds can be paid to creditors. The key to filing is to wait long enough to ensure you are eligible for Chapter 7.
However, if you are wallowing in debt and do not have cash to spare at all, you could pass the mean test. Rather than tackling these complicated calculations yourself, consider hiring an experienced attorney from Covert Marrero Covert. We can do the number-crunching so you don’t have to, and we can assist you in the filing process as well. We offer our legal services in Naperville, Schaumburg, and Warrenville, Illinois. Call us today and take the first step toward a fresh start.