Chapter 7 Bankruptcy Chicago

Chapter 7

Chapter 7 bankruptcy is considered to provide a fresh start for those who can no longer afford to carry their debts. Chapter 7 is a powerful tool designed for workers with a low wage or little regular income that may wipe out unsecured debts (credit cards, medical bills, payday loans, etc.). Nevertheless, many filers keep their car and household goods in the majority of cases. Stop lawsuits, garnishments and repossession as soon as the case is filed. In a few short months your debt will be eradicated.

A bankruptcy lawyer from Dunbar Legal Service in Chicago can help you determine your Chapter 7 eligibility and see if bankruptcy is right for you. Connect with a bankruptcy attorney today for a free, no-obligation consultation.

Chapter 7 is also known as "straight bankruptcy," and it's the most common type of case. Someone who uses Chapter 7 has few or no assets available to pay creditors, and the discharge applies to most debts. Discharge means to waive or dismiss your debts.

Most Chapter 7 cases are "no-asset," meaning there's nothing left to pay creditors after accounting for your property exemptions. State or federal law control property is exemptions. And this is why bankruptcy cases can be different from state to state.

Our bankruptcy attorney can further explain how disposable income is calculated.

Chapter 7 bankruptcy is often referred to as liquidation bankruptcy because a bankruptcy trustee can liquidate (sell) non-exempt assets to pay part of your outstanding bills.

But the term liquidation can be misleading since many people filing Chapter 7 don't have any non-exempt assets, meaning there's no actual liquidation.

Pre-Filing Credit Counseling Briefing

The law requires that you receive a Credit Counseling Briefing from a certified credit counseling agency before filing bankruptcy, regardless of whether you're filing Chapter 7 or Chapter 13 bankruptcy.

Our bankruptcy lawyer in Chicago can guide you in appropriate way.

The Bankruptcy Lawyer's Role

If you decide to file Chapter 7 bankruptcy, you will first have to complete your credit counseling session and then provide all of the necessary information to your Chapter 7 bankruptcy lawyer, who will review your situation and prepare a bankruptcy petition.

You will have to list personal information, including all of your income, assets, expenses and debts on your bankruptcy petition and any related forms and schedules. You will also have to include any applicable exemptions to which you're entitled.


Filing bankruptcy - whether it's Chapter 7 or Chapter 13 - is a decision that shouldn't be undertaken lightly.

However, if you are in a difficult financial situation that just keeps getting worse, filing bankruptcy may be your opportunity to seek broad protection against creditors, regain control of your financial life and rebuild your credit after bankruptcy.