There are several different types of bankruptcy filings available in the United States. The type of filing you choose depends on your circumstances and unique financial situation, which is why it’s helpful to have the guidance of an experienced bankruptcy attorney throughout the process.
Chapter 7 bankruptcy is the most common type of bankruptcy filed in our country. This bankruptcy is known as “liquidation bankruptcy” because it liquidates property and assets to eliminate debts.
Who Can Qualify for Chapter 7 Bankruptcy
Unlike Chapter 13 bankruptcy, both businesses and individuals who meet the other criteria are eligible to file a Chapter 7 bankruptcy case. That means that partnerships, corporations, and sole proprietors, in addition to individuals, are not exempt so long as the business’ income does not exceed the federally determined threshold.
Your Schaumburg bankruptcy lawyer can help you determine whether your income satisfies the requirements established under Chapter 7. Because the income limits vary depending on where you live and your monthly expenses, it’s best to work with a seasoned professional during this stage.
When to File Chapter 7 Bankruptcy
Chapter 7 bankruptcy is best for people and companies with excessive amounts of debt and are unlikely to repay those debts. The benefit of a Chapter 7 bankruptcy filing is that many of your debts are permanently forgiven without you having to pay them back; however, your creditors have the power to liquidate and take back much of your personal property and assets throughout the process.
You or your company will be eligible to file Chapter 7 bankruptcy if your income is low enough that it does not exceed the maximum amount and if you lack the ability to repay your debts, even over time or with a structured repayment plan.
You can file for Chapter 7 bankruptcy if you have large amounts of unsecured or consumer debt that you want to have discharged. Common types of unsecured debts include credit card debt, personal loans, and medical bills.
Speak With a Bankruptcy Attorney in Schaumburg
If you’re considering filing for Chapter 7 bankruptcy in Schaumburg, our bankruptcy lawyer can help answer your questions or represent you during your case. To speak with a member of our legal team, give us a call today at (847) 845-9477.