Skip to content

Blog

Chapter 7 Bankruptcy: An Overview

Posted in: Bankruptcy Law, Chapter 7 Bankruptcy Law

If you are facing financial difficulties and struggling to make ends meet, filing for bankruptcy may be your best option to help you get back on your feet and eliminate your debt. Chapter 7 bankruptcy is the most common type of bankruptcy that allows you to discharge your unsecured debt, such as credit card debt and medical bills. If you live in Chicago or Cook County and need an attorney specializing in bankruptcy law, you are at the right place. At DebtPros, our experienced lawyers will help guide you through the bankruptcy process and determine if Chapter 7 is right for you.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a type of bankruptcy intended for people who have little or no disposable income every month to repay their debts. The purpose of Chapter 7 is to give you a fresh start by discharging your unsecured debts. When you file for Chapter 7 bankruptcy, a trustee is appointed to oversee your case. It is important to hire a bankruptcy lawyer who is familiar with the Chicago trustees. The trustee is responsible for selling any non-exempt assets to pay your creditors. In most cases, you get to keep all your assets or property.

You may retain your car or home in Chapter 7 in certain situations. For a car, you can keep it if you are current on the car note and sign a reaffirmation agreement. The reaffirmation agreement is a contract sent over by the lender spelling out the terms of your car loan. Sometimes, it is best to surrender your car if it is not affordable and eliminate the debt owed to the finance company. For a house, it is a similar process. However, it is normally advised that you do not sign the reaffirmation agreement because you can eliminate your personal liability on the note and keep the house as long as you make your mortgage payments.

How Does Chapter 7 Bankruptcy Work?

The process of Chapter 7 bankruptcy starts with a consultation with a bankruptcy lawyer. Your attorney will review your unique financial situation to determine if Chapter 7 bankruptcy is the right option for you. If you decide to proceed with filing, your attorney will assist you in preparing and filing your bankruptcy petition with the bankruptcy court.

Once your bankruptcy petition is filed, creditors are prevented from pursuing any collection efforts against you. This includes garnishing your wages, filing lawsuits, or even calling you. After the case is filed, a meeting of creditors is scheduled, which you must attend. During this meeting, the trustee will ask you questions about your finances and assets. Although creditors can also attend this meeting, they rarely do.

After the meeting of creditors, you must complete a debtor education course to receive your discharge. The entire process of Chapter 7 bankruptcy typically takes four to six months. If there are any unexpected issues that arise in your case, our Chicago bankruptcy lawyers are here for you to address any problems.

What are the Benefits of Chapter 7 Bankruptcy?

There are several benefits to filing for Chapter 7 bankruptcy, including:

  1. Discharge of Unsecured Debts: Chapter 7 bankruptcy allows you to eliminate your unsecured debts. The most common type of unsecured debts include credit cards, medical bills, and personal loans.  
  2. Protection from Creditors: The automatic stay that goes into effect when you file for Chapter 7 bankruptcy stops creditors from pursuing collection efforts against you. This includes harassing phone calls, wage garnishments, or lawsuits.
  3. Fresh Start: Chapter 7 bankruptcy gives you a fresh start by discharging your unsecured debts. This allows you to start over and rebuild your credit.
  4. Keep Most of Your Assets: In most cases, individuals who file for Chapter 7 bankruptcy keep all of their assets, including their home and car.

Who Qualifies for Chapter 7 Bankruptcy?

To qualify for Chapter 7 bankruptcy, you must pass the means test. To pass the means test, you must make under a certain amount of money for the 6 months prior to filing for bankruptcy. If your income is above the median income for your state, you may not qualify for Chapter 7 bankruptcy.

In addition to the means test, there are other eligibility requirements for Chapter 7 bankruptcy, including:

  1. You must be a resident of the United States.
  2. You must have completed a credit counseling course before filing for bankruptcy.
  3. You must have not filed for Chapter 7 bankruptcy within the past eight years.

Call DebtPros Now for a Free Consultation!

If you are being harassed by creditors or overwhelmed with debt, Chapter 7 bankruptcy may be your best solution to get a fresh start. When you call our Chicago office, you will speak directly with a bankruptcy lawyer who will discuss whether you should file bankruptcy or not. Do not wait to call!   

Client Testimonials

What Our Clients Say

I want to start by saying THANK YOU! John was patient, prompt, informative and easy to work with. In our time of need, he helped my parents file for bankruptcy successfully and at a great price. If you are ever in the need of any services concerning your debt and potential bankruptcy litigation, I give my word and experience that John is the BEST in the Chicagoland area.

- Eric McDowell

John was outstanding in the process of my chapter 7. Not only did he keep me abreast of every step and matter that involved my BK but he was reasonable with the price and the time I had to pay him. He sent me places that accepted my Bk when it came to getting a new car as well and his communication was an A+. There was never a time I couldn’t reach him and if he missed my call he would proceed to call back before the day over or early the next day. I recommend him to any and everyone!

- Lamar Johnson

John is a great lawyer to work with. It’s easy to be honest and share things with him. It felt good to communicate with him. When I reach out to him, he is very good at answering the phone or responding when he can. I recommend his work as well. He’s very organized and gets things done. Thank you John.

- JP W

This guy made my experience so smooth I would recommend him to anyone who is thinking about filing for bankruptcy. He is very patient with his clients and Is very informative. Every question I had he answered even if I asked it twice. Highly recommend!!!!!!

- Nikita Nichols

John is very patient, he’s worked with me from start to finish. Always answer my questions and never made me feel like I’m a bother. Never made me feel like I’m a number in his book. He’s very helpful and caring which is why I’d recommend him over any bankruptcy lawyer. Thanks John for all you do.

- Corey Ross

Thank you team DebtPros! The choice to file was not easy, but it was the best decision for my family. John, I appreciate your kindness, thoroughness, and professionalism. I feel like you’ve guided me through this process in a very personable way. Thank you for always being available to chat, and making the experience so efficient and understanding. I can see the silver lining toward a fresh start! Thank you again & Have a wonderful summer. Sincerely, SB.

- Shelly Boyki

I am honored to provide such a financial relief feedback for this amazing blessing whose name is Atty. Wonais. There is so much I could share endlessly about his superb knowledge and service that he offered me as his client. However, I will share what I found to be essential in my financial issues that Atty. Wonais selflessly provided to me as his client; his expertise, his ability of trustworthiness was "everything" oh my goodness he is truly trusting thru the entire process.

- Val B.

I was referred to them, and this has been the best decision I have ever made. I never been this confident in a person like I am with John. He heard my needs and wants, he made it possible to give me that. Excellent customer service. He put all my options on table to fit my needs. He never sugarcoat he gives it to you like it is meaning he’s not rude or unprofessional. He’s that person that tells you what you need and bot what you want. I have referred all my friends and family to his service.

- Nicole Murray

So one night I went online looking for advice on google and John came up and I called him on the weekend late evening and he happened to answered which was awesome. John helped me out with my situation he gave me amazing advice and options on how to take on my problems the right way. John is super easy to talk to Very informative and he answered all my questions.

- Freddy

This office and staff was amazing. I was referred to John from my best friend and as soon as I reached out he was very prompt on getting back to me and helping. From start to finish the process was amazing stress free and straight forward. He stayed in communication no matter what time of the day. If I had a question he had the answer. His tips and tricks and knowledge helped me a lot and made me more comfortable and excited about starting over.

- Kierra Smith

John took me on as a client with no problem. He was very understanding, passionate, helpful and available every step of the way. Trust me I am a very happy client, I definitely recommend John.

- Jessica Burton

John did a wonderful and seamless job with my case-he handled everything properly and was very timely in all of his communication. He is professional and reliable. I would highly recommend him to anyone who may have to deal with a bankruptcy. Five stars!

- Ashley I.

I had a great experience with Wonais Law, LLC. John is very patient and replies right away to any questions or concerns that you have. I would recommend his services to anyone.

- Erika Sing

If I can leave more stars I will. Wonaia Law is highly recommended. John is great with making sure I understand everything that was going on, I really appreciate how he’s always there to answer any questions I have ... My chapter 7 is just about over and I have 2nd chance with living life debt free.

- Tiffany Austin

John Wonais is responsive, professional, and cares for his clients. He is extremely experienced in civil litigation and has answered all of my questions in a way that I can understand as someone with zero experience in law. He has gone above and beyond and has always made sure to follow up with me when I’ve needed it. I truly feel that he has my best interest at heart.

- Ariana Khosravani

I really wanna give a big thanks to John he helped me out a lot. He walked me through everything to make sure I understand, good quality. I don’t think I could of did it without him ?

- Twona Gibson

He gave an expert and advise and a great service. He went all out to be sure I got a solution to the issue I had.

- Betty Salami

I want to thank John for helping me win my case he was very helpful throughout the process and very professional, thanks again.

- Diana M.

I was very impressed on how quickly I was responded to, and how my lawyer John made everything so easy for me to understand. I have never had to hire a lawyer before, and I'm really glad that I met such a professional, and honest person. I would highly recommended.

- Angela Mata

DebtPros is a law firm that specializes in consumer bankruptcy. John has years of valuable experience and is dedicated to helping clients file for bankruptcy. John is responsive and provides a free consultation to prospective clients. I recommend this firm to anyone who is considering filing for bankruptcy.

- Taylor Kosla

John Wonais provided me with timely and beneficial legal counsel. I would trust his firm to represent me in any creditor-related case. John's professionalism and expertise are second-to-none; highly recommend his services.

- Richard Young

Very helpful, professional and they’re reasonably priced.

- Anthony Brown

Great Professional Service- I have been working with Wonais Law the past couple weeks and I have been blown away from their attention to detail and professionalism. They get work done quickly and are extremely responsive. I would recommend this firm to everyone needing legal services.

- Andres Jara

Free Consultation - Call 24/7

Fill out the contact form or call us at (312) 883-5422 to schedule your free consultation.

Send Us A Message

Visit with an experienced bankruptcy attorney in your area or call now for a virtual consultation.