For most consumers, life before bankruptcy is fraught with financial difficulties. It is important to remember that although bankruptcy is not the first resort, it is best not to wait too long to take action. If you are facing what seems to be insurmountable debt, contact an attorney at once in order to begin to formulate a plan of attack to win your financial freedom.
Discharge Your Debts
Through a Chapter 7 bankruptcy, you may be able to discharge credit card debts, medical bills and most other types of consumer debt. To speak with an Illinois bankruptcy lawyer, contact Illini Legal Services.
To schedule a free consultation with an attorney at our firm, call 630-405-5027 or contact us by e-mail. We have been handing bankruptcy cases for more than 30 years.
Illini Legal Services is engaged in the private practice of law and is not a public legal aid agency.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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Credit card debts, medical bills and other types of unsecured debt can be discharged through a Chapter 7 bankruptcy. Contact Illini Legal Services to learn more. We have law offices in Aurora, Oswego, West Chicago and Geneva.
We handle Chapter 7 bankruptcy and Chapter 13 bankruptcy. At your free consultation, we can discuss your financial situation to determine if either of these options may be right for you.
Exempt vs. Non-exempt Property Under Chapter 7
In a Chapter 7 liquidation case, the debtor must relinquish certain property to the bankruptcy trustee so that he or she can sell the property and use the proceeds to pay off debts. Property of the bankruptcy estate is broadly defined under Section 541 of the Bankruptcy Code. The estate is technically the legal owner of all of the debtor's property and consists of all legal and equitable interests that the debtor has in property at the initiation of the bankruptcy case. Income that the debtor earns after the date of the petition is not included in the estate. Debtors, whether they are businesses or individuals, are often justifiably concerned about what property they will be allowed to keep and what they must give up. A bankruptcy lawyer at Illini Legal Services in Aurora, Illinois can answer these and other questions, allay fears and keep the process moving forward as painlessly as possible.
A debtor must file a schedule of exempt property with the court. Exempt property is property that the debtor can protect from liquidation. The Bankruptcy Code allows each state to adopt its own exemption laws, which the debtor can select instead of the federal exemptions. It is important to consult with an attorney who can explain the exemptions available under your state's laws and how they compare to the available federal exemptions.
Non-exempt Property
Items that the debtor usually must forfeit include:
- Expensive musical instruments, unless the debtor is a professional musician
- Collections of stamps, coins and other valuable items
- Family heirlooms
- Cash, bank accounts, stocks, bonds and other investments
- A second car or truck
- A second home or vacation home
Exempt Property
Certain types of property are exempt, meaning that the debtor can keep that property. Exempt property includes:
- Motor vehicles, up to a certain value
- Reasonably necessary clothing
- Reasonably necessary household goods and furnishings
- Household appliances
- Jewelry, up to a certain value
- Pensions
- A portion of the equity in the debtor's home
- Tools of the debtor's trade or profession, up to a certain value
- A portion of unpaid but earned wages
- Public benefits, including public assistance (welfare), social security and unemployment compensation, accumulated in a bank account
- Damages awarded for personal injury
Conclusion
If you have questions about what property you will be allowed to retain if you file for bankruptcy under Chapter 7 of the Bankruptcy Code, it is prudent to seek the counsel of an experienced and knowledgeable bankruptcy attorney at Illini Legal Services in Aurora, Illinois who can respond promptly and accurately and put your mind at ease.
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