Who Can Benefit From Chapter 7 Bankruptcy?

Who Can Benefit From Chapter 7 Bankruptcy?

When you think about bankruptcy, you probably think about all of the bad things you have heard about it. The truth is, bankruptcy is not necessarily a bad thing. It is a way for people to get out of debt and get their finances under control. This week, this column will focus specifically on Chapter 7 bankruptcy and who in Illinois can benefit from pursuing it.

Most people who are in need of bankruptcy protection may qualify for Chapter 7. It all comes down to money coming in versus money going out and the type of debt one has. If your income is less than the state’s current median income level — which is just under $63,000 according to current census data — you may qualify for Chapter 7 relief. If your income is above the median income level, then whether you qualify comes down to your disposable income — the amount of money you have left after all your basic bills are paid and needs are met.

The main benefit of pursuing Chapter 7 is that it can offer immediate debt relief — all qualifying debts will be discharged upon your petition receiving court approval. Other benefits include the end of creditor harassment and the ability to keep certain property. If you are in a bad financial way, these benefits can certainly outweigh any downsides to seeking bankruptcy approval.

So, who can benefit from Chapter 7 bankruptcy? The answer is just about any Illinois resident who lacks the means to pay his or her creditors. If you would like to find out if this type of bankruptcy would benefit your situation and what it takes to qualify, please take a moment and visit our firm’s website.


Family-Focused Advocates

Meet Your Attorney

Why Clients Choose Us

  • Family-Run Firm
  • Free Consultations
  • 20+ Years of Legal Experience
  • No Pressure to Sign at Initial Intake

Awards & Memberships

Client Testimonials

Hear stories from the clients we have worked with in the past that we still consider family.
  • “I am extremely pleased with the service they provided: from giving me advice on how to prepare, to working with creditors, and finally to handling the legal aspects of the bankruptcy itself. They took ...”

    - Mike
  • “Deciding to file bankruptcy and going through the process of foreclosure on our home was not something my husband and I ever thought we would have to do. On our initial visit with John, he explained ...”

    - Anonymous Client
  • “This extra special note sent to you today holds more appreciation than any words can say. Over 30 years ago, I found myself in a career helping others in need. I never expected to be in need myself ...”

    - Mrs. J.
  • “Just a note to say thank you for the legal advice you gave me last week. Before I came to see you, I was scared to face my problems, but today I opened a checking account and will go to the Social ...”

    - Mrs. K.
  • “Roseanne is the best. My husband and I went with a cheap bankruptcy attorney to save money. BIG mistake. We ended up with an adversary hearing that our bankruptcy attorney couldn’t handle. So after ...”

    - Anonymous Client

Take That First Step With Us

Schedule a Free Consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.