Chicago, IL Chapter 7 Bankruptcy Attorneys
Professional Debt Relief Services in Chicago & Suburbs
The average American household which carries balances month to month has over $15,000 in credit card debt. This enormous figure does not even include other forms of unsecured debt, such as payday loans and signature loans. The stories behind this debt are almost as varied as the households themselves. Perhaps a temporary layoff forced your family to live off credit cards for a few months; a divorce triggered a slew of unanticipated expenses; or an insurance policy only covered part of a huge hospital bill. The event may not have been your fault, but the bills are still coming due and the moneylenders do not really care about your financial problems.
Chapter 7 is a “straight bankruptcy” where your bills are released, or “discharged”, without a payment plan. You pay only your court filing fee (currently $335.00) and your attorney’s fee, which may vary depending on your situation. Some debts are not dischargeable in bankruptcy, such as child support, spousal maintenance, certain government taxes, and student loans. You should discuss your debts carefully with your attorney to make sure that you know which debts will not be discharged. You must also be aware that filing a Chapter 7 will not allow you to stop making payments on a house or car or other secured debt if you want to keep that item. You will also have the choice of either letting the property go and not owing the money anymore, or electing to keep the property (“reaffirming the property”), and making payments on it.
At the Law Office of Thomas W. Drexler, we help distressed families find relief under Chapter 7 of the United States Bankruptcy Code. Filing for Chapter 7 bankruptcy can stop repossession, foreclosure and creditor harassment, eliminate most or all of your unsecured debts. Give your family a fresh financial start, and all within a matter of months, in most cases. Contact us today to learn more about this federal government debt relief program.
“Unsecured debts” are linked to a promise to pay money, as opposed to a tangible item that can be repossessed if payments stop, such as a house, car or furniture. Typical examples include:
- Credit Cards: With interest rates in the mid to high teens, or even higher, these accounts can quickly grow to the point where they are very difficult to repay.
- Payday Loans: Although you may have agreed to allow the lender to automatically deduct funds from your checking account, these loans are still unsecured and dischargeable in bankruptcy.
- Medical Bills: Today’s medical expenses are truly staggering, even if you are only in the hospital a few hours. Insurance rarely pays the full amount, leaving many American families with huge bills to pay.
Chapter 7 bankruptcy eliminates most of these debts, while allowing you to keep under certain limits your assets and possessions, which could include:
- Your house,
- Your car,
- Your retirement account,
- Jewelry and other personal property,
- Furniture and household appliances, and
- Tools and equipment.
Bankruptcy stops all adverse creditor action. In an emergency situation, the case can be filed in as little as a few hours.
The first step is to file a voluntary petition and financial schedules. About six weeks after filing, there will be an informal meeting with a bankruptcy trustee whose primary job is to confirm your identity and ensure that the paperwork has been properly filed. About six weeks after the meeting, all your unsecured debts are discharged. Our attorneys then help you get back on your feet by showing you ways to avoid prior bad habits and rebuild your good credit rating.
At the Law Offices of Thomas W. Drexler, we respect the diversity of our clients and we’re proud to to eliminate debt for everyone and get a fresh start, contact us today for a free consultation.