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3 Important Things about Chapter 7 Bankruptcy

Chapter 7 bankruptcy can help a debtor to gain freedom from the heavy burdens of excessive debt. Whether from loans or credit card debt, financial obligations to creditors can easily become too much for a person to handle. To get their life back from the constant hassling, debtors may want to consider Chapter 7 bankruptcy as a possible solution to their debt problems.

If you are facing overwhelming debt and are seeking an end to your financial troubles, bankruptcy may be right for you. To learn more about your legal options as a debtor, contact the Joliet Chapter 7 bankruptcy lawyers at the Law Offices of Stuart B. Handelman by calling 815-722-2201 today.

Things You Must Know

Each chapter of the United States Bankruptcy Code has different provisions and requirements, and it is important that you understand certain important elements of Chapter 7 bankruptcy proceedings before you file.

#1: You Have to Qualify for Chapter 7 Bankruptcy

Chapter 7 bankruptcy requires a debtor to qualify for this type of bankruptcy. According to federal bankruptcy code, a debtor needs to prove that they have gone through credit counseling and pass the means test before they can file for Chapter 7 protection.

#2: Chapter 7 Bankruptcy May Result in the Loss of Property

Chapter 7 bankruptcy is also known as liquidation bankruptcy, because a debtor may be required to surrender certain property or expose it to bankruptcy sale in order to generate funds which can be used to partially pay creditors. Any such payment is typically regarded as satisfying the debt.

#3: Exemptions Can Save Some Property

Debtors should consider the state and federal exemptions available for Chapter 7 bankruptcy filers. These exemptions can help a person hold on to important property, including houses and cars.

Contact Us

If you are struggling with your debts, we may be able to help. For more information regarding your options, contact the Joliet Chapter 7 bankruptcy attorneys of the Law Offices of Stuart B. Handelman by calling 815-722-2201 today.