Frequently Asked Questions
Chicago Area Bankruptcy Attorney
1) Will I have to give up all my assets in Chapter 7?
No. The Bankruptcy Code provides that a debtor filing for bankruptcy can keep certain assets for a "fresh start" by exempting property from the bankruptcy estate. The vast majority of bankruptcy cases under Chapter 7 are "no asset" cases, in which the debtors have claimed an exemption in everything they own; there are then no assets from which to pay creditors.
2) Can I keep my car in Chapter 7?
It is possible that you can keep certain property, such as your car, even when going through a Chapter 7 bankruptcy. If you still owe money on the car, and there is no equity in the car after subtracting any car loan and exemption from the car's present sale value, you can choose to reaffirm the debt to the secured lender, keep the car, and continue paying under the existing terms; or you can buy the car from the secured creditor in a single payment for its present value (redemption). If there is equity in the car over and above the value of the exemptions available, a debtor can usually buy any unprotected equity from the Chapter 7 trustee. Alternatively, if you choose, you can surrender the car and be free of any obligation to pay for it.
3) How can I stop the constant creditor calls?
As soon as your bankruptcy under either Chapter 7 or Chapter 13 has been filed, there is an immediate "stay" of all collection actions by creditors. Any creditor who violates this “stay” can be sanctioned by the bankruptcy court.
4) If I file for Chapter 7 bankruptcy, will I be able to keep my home?
If there is no equity in the house (today's value less costs of sale less payoff balances on all liens) you keep it as long as you pay the mortgages. If there is equity, your home is protected up the exemptions provided under Illinois law. It is crucial that you get legal advice from a bankruptcy attorney at the Law Offices of Paul T. Marinoff, Ltd. to ensure that your home is not at risk.
5) Are there debts that I cannot discharge?
Yes. The scope of the discharge varies in each chapter: in Chapter 7, debts incurred by fraud, intentionally harmful actions, dishonesty, as well as priority taxes, unfiled taxes, family support and debts to a former spouse, student loans, criminal fines and restitution cannot be discharged. In Chapter 13, you can discharge non-support debts to a former spouse, government fines, and some intentional torts that could not be discharged in Chapter 7.
6) Will I lose my retirement savings?
No, most forms of retirement savings are unaffected by a bankruptcy filing.
If you are considering filing for bankruptcy, contact the Law Offices of Paul T. Marinoff, Ltd. for a consultation today.