Chapter 7 bankruptcy is seen as giving people a chance to get a whole new fresh start.  A Chapter 7 bankruptcy will completely wipe out all dischargeable debts, such as medical bills, credit card bills, utility bills, and so on.  Filing Chapter 7 is designed for debtors who do not have the ability to pay their existing debts.  In a Chapter 7 case, a trustee secures for the bankruptcy estate all your assets which the trustee may obtain under the applicable provisions of the Bankruptcy Code.  You may claim certain of your property exempt under governing law.  The trustee may then liquidate the non-exempt property as necessary and uses the proceeds to pay your creditors according to priorities of the Bankruptcy Code. 

The purpose of filing a Chapter 7 case is to obtain a discharge of your existing debts.  If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, your discharge may be denied by the court, and the purpose for which you filed the bankruptcy petition will be defeated.

Even if you receive a discharge, there are certain debts that are not discharged under the law.  Therefore, you may still be responsible for such debts as certain taxes and student loans, alimony and support payments, criminal restitution, and debts or personal injury caused by driving while intoxicated from alcohol or drugs.

For more information or to schedule your free consultation, please contact us at (847) 680-1110.  If you prefer, you may fill out the below form and a representative from our office will contact you immediately.