Valparaiso Chapter 7 Bankruptcy Attorney
Illinois is a state that is known for having the worst recovery from the most recent recession. A lot of homeowners suffered in the late 2000s, but it did not just affect those who owned homes. The economy in Illinois plummeted during that time, meaning that just about everyone suffered financially. This is what led to an uptick in Chapter 7 bankruptcy filings, and it is still something that many in Illinois are considering.
If you are having trouble paying off your debts and think Chapter 7 bankruptcy might be a good solution, you might be right. Chapter 7 bankruptcy has helped many people escape the crushing weight of debt so they can finally enjoy financial freedom. If you are considering bankruptcy, you must speak to a Valparaiso Chapter 7 bankruptcy attorney who can help with your case.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a liquidation bankruptcy. This means that you ask the courts to discharge most of your unsecured debt, including medical bills and credit card bills. In return, you agree to sell many of your assets in order to pay back as much of your debt as possible.
Not everyone can qualify for a Chapter 7 bankruptcy. In order to do so, you will have to pass a means test. This is a test that determines whether or not you have the means to pay back your debt. You will have to submit all of your financial information including how much income you earn and the total amount of your debts and daily expenses. Once your average disposable income is calculated, it will be compared with an average household of the same size. If your income is less, you will qualify for Chapter 7 bankruptcy.
Many that are considering bankruptcy become concerned once they hear they may have to sell their assets. However, Illinois bankruptcy law also allows for many exemptions. In some cases, debtors do not have to sell any of their assets at all.
Bankruptcy Exemptions in Valparaiso
Chapter 7 bankruptcy allows for many exemptions or items you can keep after filing for bankruptcy. In Valparaiso, these exemptions are as follows:
- Your home: Up to $15,000 in equity
- Your vehicle: Up to $2,400 in equity
- Personal property: Clothing, books, prescribed health aides, and family pictures are all exempt.
- Wages: Up to 85% of your gross earnings or 45 times the federal hourly minimum wage, whichever is greater
- All tax-exempt retirement accounts are exempt
An attorney can advise on any other exemptions you may qualify for and help you keep more of your assets.
Trouble with Debt? Speak to a Valparaiso Chapter 7 Bankruptcy Attorney
Many people think that filing for Chapter 7 bankruptcy is a last resort. While for many, it may be, it is often also the only chance for a person to reclaim his or her financial freedom. Anyone wishing to file should speak to a Chapter 7 bankruptcy lawyer in Valparaiso.
If you are considering bankruptcy, do not try to file it on your own. The bankruptcy reform laws that came into effect in 2005 have made it extremely complicated. One small misstep could forfeit your chances of getting the debt relief you need. Give yourself the best chance of success and call the Law Office of Kevin M. Schmidt, P.C. today. We will inform you of the entire process, and walk you through it, so no mistakes are made. Call us today or contact us online to learn more about how we can help.