Chapter 7 Bankruptcy
Bankruptcy under this chapter is what most people commonly associate with a "bankruptcy". It provides the quickest and greatest amount of relief. The Bankruptcy Abuse Prevention and Consumer Protection Act has added some hurdles to this form of bankruptcy in 1995, but it is still a popular and readily available form of bankruptcy for most people.
First, there is a "means-test" that must be passed in order to qualify for Chapter 7.
In Illinois, for one earner, the income must be at or below $47,355.00. For two people, $60,049, three, $68,730 and four, $81,184. Increase these amounts by $6,900 for each additional person.
Otherwise, After deducting statutory amounts, if you have over $100 per month to pay to debtors, you may not qualify for a Chapter 7.
If you're a little bit over the means test, don't despair. There are additional rules and procedures which may still qualify you for a Chapter 7.
You are allowed to have some equity which is set by law in your automobiles and a certain amount of equity in your home. There are also set limits for exemptions pertaining to various articles such as clothes, work tools, furniture, cash, personal injury recoveries and a few other items that are exempt altogether such as pensions, workers' compensation and some insurance benefits. For some more specifics on a Chapter 7 Bankruptcy, click here.
Give me a call and let's talk about your situation. Let's get you a fresh start!