Illinois Chapter 7 Bankruptcy Attorney

Serving clients in Cook, DuPage, Lake, Kane, Kendall and Will Counties from three convenient locations: Lombard – Bloomingdale – Chicago

Among the many forms of bankruptcy defined in the U. S. Bankruptcy Code, Chapter 7 is the most common type chosen by individuals, typically those who have few assets, unsecured and credit card debt.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) changed the rules for filing for bankruptcy protection. Previously anyone could file for a Chapter 7 bankruptcy. However, under the new code, your income now determines whether or not you can file. In order to file for a Chapter 7, you must pass a Means Test in one of two ways:

1. You must be able to show that your income is below the median income for your state as shown by the Census Bureau. As of Jan. 1, 2008, the median family income for Illinois by family size is: 1 wage earner Illinois $43,436
   2 people: $54,979
   3 people: $64,763
   4 people: $75,484*
   *Add $6,900 for each individual in excess of 4.
2. If you earn above the median income, you may be able to meet Chapter 7 filing requirements if you can demonstrate that you have insufficient funds to make payments to your creditors after all of your "allowed living expenses" are deducted from your income.

Arrange a free consultation. Call our law firm toll-free number 630-932-9100 or Contact a Bankruptcy Attorney Online.

Additional BAPCPA stipulations for debtors filing for Chapter 7 include more proof of debt, increased documentation, credit counseling and debtor education. Debtors must undergo credit counseling from a government-approved organization within 180 days before filing for bankruptcy. To have their debts discharged, debtors must also complete a debtor education course.

All bankruptcies are federal court proceedings. In a Chapter 7 bankruptcy, your assets are turned over to a trustee who liquidates them and pays your creditors with the proceeds. The trustee will determine which assets to liquidate and which are exempt, based on federal and state statutes governing liquidation.

Although statutes may vary from state to state regarding specific exempt and non-exempt assets, in Illinois, exempt assets include:

• Real or personal property, including farms, lots, buildings, condos, co-ops and mobile homes up to $15,000 (homestead exemption)
• Professional items and tools of trade up to $1,500
• Up to $2,400 equity in vehicles
• Most retirement and pension plans
• Household furnishings
• Clothing, health aids, school books, family pictures, bibles
• Personal injury recoveries up to $15,000
• Proceeds from the sale of exempt property

Examples of non-exempt assets are:

• IRS debt;
• alimony/spousal support;
• child support;
• student loans from government organizations;
• fines and penalties for law violations, such as traffic tickets;
• debts for personal injury or wrongful death;
• any debts not listed when filing for bankruptcy unless the creditor learns about your bankruptcy case.

If you have exhausted all other options to resolve your financial difficulties, bankruptcy may be the last possible solution. To understand the requirements of bankruptcy law and determine if the process is right for you, it is important to seek legal advice.

At the Law Offices of Steven H. Mevorah & Associates, our experienced bankruptcy lawyers will carefully review your financial situation, recommend the type of bankruptcy most appropriate in your circumstances and guide you through the complexities of filing for bankruptcy.

Getting Legal Help

If your financial difficulties have reached the point of insolvency, call our office to arrange an appointment to discuss your debt problem with a skilled bankruptcy attorney.

• Three convenient Illinois offices – Lombard – Bloomingdale – Chicago
• Free initial consultation
• Saturday and evening appointments available

Arrange a free consultation. Call our law firm toll-free number 630-932-9100 or Contact a Bankruptcy Attorney Online.

Pursuant to 11 U.S.C. §528, Steven H. Mevorah & Associates, P.C. is considered a debt relief agency. We will proudly help you file for bankruptcy relief under the Bankruptcy Code if we believe it is in your best interest.