Chapter 7 bankruptcy is sometimes called "straight" or "liquidation" bankruptcy — it cancels your debts, but you might have to let the bankruptcy court liquidate (sell) some of your property for the benefit of your creditors. ("Chapter 7" refers to the chapter of the federal Bankruptcy Code that contains the bankruptcy law.)
You won't be able to use Chapter 7 bankruptcy if you already received a bankruptcy discharge in the last eight years (depending which type of bankruptcy you filed) or if, based on your income and expenses, you could feasibly complete a Chapter 13 repayment plan.
Filing for Chapter 7 bankruptcy stops all creditors from any collection action — known informally as the "automatic stay." The automatic stay immediately stops most creditors from trying to collect what you owe them. Therefore, during the bankruptcy, your creditors cannot legally take ("garnish") your wages, your bank account, your car, house or other personal property. Our Chapter 7 bankruptcy lawyers in Lisle can provide sound advice and assistance for the Chapter 7 bankruptcy process.
At the end of the bankruptcy process, you will be free of all of your debts (discharged) by the court, except:
- Child support, most tax debts and student loans, unless the court rules otherwise
- Debts that the court has declared non-dischargeable, for example, debts from fraud
For a free consultation about bankruptcy, contact us toll free at 800-491-7493.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.