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.