Gary R. Garretson
James M. Durkee
Attorneys at Law
1802 N. Division St., Suite 201, Morris, Illinois
(815) 941-2825
Fax: (815) 941-2840
E-Mail: ggarrets@hotmail.com.
|
Gary R. Garretson James M. Durkee Attorneys at Law 1802 N. Division St., Suite 201, Morris, Illinois (815) 941-2825 Fax: (815) 941-2840 E-Mail: ggarrets@hotmail.com.
|
|
Chapter 7 in detail The Basic Idea The basic idea in a chapter 7 bankruptcy is to wipe out
(discharge) your debts in exchange for your giving up property, except for
''exempt'' property which the law allows you to keep. In most cases, all of your
property will be exempt. But property which is not exempt is sold, with the money distributed to creditors. If you want to keep property like a
home or a car and are behind on the payments on a mortgage or car loan,
a chapter 7 case probably will not be the right choice for you. That is because chapter 7 bankruptcy does not eliminate the right of mortgage
holders or car loan creditors to take your property to cover your debt. What is Covered? Chapter 7 bankruptcy will eliminate unsecured debts, such as credit cards, utility bills, medical
bills, personal loans and debts owed on a repossessed car. A Chapter 7 will not eliminate secured debts, like car loans and mortgages.
You must continue to make those payments if you want to keep
your house or car. A Chapter 7 will also not eliminate
debts such as student loans, recent tax bills, parking tickets, child support, alimony payments, or accidents caused by drunk driving. Those types of debts can only be dealt with through Chapter 13. The laws regarding the elimination of student loans changed in October 1998. The only way to get
rid of student loans now is if you can show extreme hardship. Generally, tax debts are dischargeable only if the debt is over
seven years old from the time it first
became due and you have file all tax returns. Because of the many nuances in Chapter 7 law, the specific terms of any filing will only become
clear once the facts of a particular situation are known. However, if you are considering filing
Chapter 7, there are a few things you should not do under any circumstances: Do not make any property transfers. Do not pay off one of your credit cards. That is called a "preference" and will make it more difficult for you to get a discharge. The filing process Filing Chapter 7 is relatively easy. There are typically no court appearances necessary. You need only to appear (with your attorney) for a very informal meeting that takes place about five weeks after your case is filed. This meeting is referred to as a Section 341 Meeting or Creditors' Meeting. The purpose of this meeting is for a court-appointed trustee to ask you a few very brief questions to determine whether you have any non-exempt assets. Your creditors are given notice of this meeting and are permitted to question you, but usually they are not present. The meeting generally takes less than five minutes. After the meeting, all you have to do is wait about 6 to 8 weeks for your discharge papers to arrive in the mail.
For Information about Chapter 13
Click here:
|
|
Garretson Law Office Call Today (815) 941-2825 or E-Mail Us at ggarrets@hotmail.com
Evenings and Saturday Hours Available by Appointment Our Attorneys are Admitted to Practice by: Illinois Supreme Court; United States District Court, Central District of Illinois, Northern District of Illinois (Member Trial Bar); and United States Supreme Court
Disclaimer: The information provided here is to be used as general information only and is not intended to suffice as legal advice upon which you can rely for your particular situation. In the event you have specific questions, please call us or another qualified attorney.
Author: Gary R. Garretson.
|
