Avoid Mistakes When Planning and Filing Illinois Bankruptcy Cases

The best-planned bankruptcy cases go unnoticed. A few debtors glide through the system without attracting attention and receive full discharges in record time. Luck is not involved, but rather each successful debtor begins planning strategically a few weeks or months in advance. These debtors know something that you don’t.

Free - 2010 Bankruptcy Strategies Explained

Illinois Bankruptcy - Chapter 7

Chapter 7 laws liquidate debts without payment. Chapter 13 requires that debts are repaid, in whole or in part, over a term of months. Because of these uniquely exclusive purposes, the impact of a Chapter 7 Illinois bankruptcy is quite different as compared to a Chapter 13 Illinois bankruptcy. The term "straight bankruptcies" is old term which still survives today and is sometimes used to describe cases filed under Chapter 7.

Most consumer debts are dischargeable. Routine discharges are available for mortgage deficiencies, car notes, credit cards, accounts payable, and many others. Certain debts are not dischargeable, and in general, include liabilities owed to government authorities (taxes, fines, penalties) and civil liability for debts imposed on others without permission (child support, judgments for damages, DWI, DUI, theft, fraud, etc.).

Illinois Bankruptcy Protection

The primary purpose of Chapter 7 laws is to discharge debts and provide debtors a "fresh start." However, all people who file are not entitled to a discharge of all debts. Limitations are imposed on who may file, and the particular debts that may be discharged. Illinois bankruptcy courts are charged with an affirmative duty to review compliance with all applicable rules and statutes. Likewise, trustees and creditors may file objections and direct the courts attention to noncompliance. Depending upon the classification for each debtor who files and classification of debts included within the estate, the application of Chapter 7 laws is unique for each person who files.

In practice, most individuals who file Illinois bankruptcy under Chapter 7 do receive a discharge without surrendering significant assets. Most often, this favorable result for debtors occurs after careful review and planning. If significant assets are subject to seizure, or discharge of debts is questionable, debtors often choose reorganization or avoid filing altogether using one of the many alternatives available today. Avoid all surprises.

Selecting the correct chapter to maximize results may seem to be a daunting task. The process of selection necessarily begins with familiarity with current laws. Because laws change frequently as new decisions are rendered, local attorneys who are familiar with the practices of each judge are an ideal source of information.

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