Chapter 7 Bankruptcy

Chapter 7 — Wiping the Slate Clean and Eliminating Debt

U.S. bankruptcy law gives people struggling under a crushing burden of debt a chance for a fresh start. With some exceptions, filing Chapter 7 bankruptcy can completely discharge — eliminate — your debt. You never have to pay it back. No other form of consumer debt relief has the power to wipe away your debt and let you start over.

Bankruptcy has other powers, too. It can stop harassment by creditors, stop foreclosures, stop wage garnishments and stop repossessions.

 What's the Catch?

• Eligibility: Not everyone is eligible to file Chapter 7 bankruptcy. If you earn too much money or own too many assets, you may not qualify. The bankruptcy judge may expect you to pay back some or all of your debts.
• Liquidation: The bankruptcy court can liquidate — sell — some of your possessions and use the money to pay back some of what you owe to your creditors, however, you won't lose everything. Visit our What Can I Keep? page to learn what assets Illinois bankruptcy law allows you to keep in a Chapter 7 bankruptcy.

Who Can File Chapter 7?

At the Law Offices of Serpe, Dizonno & Associates, our bankruptcy law attorneys can tell you whether or not you are eligible to file Chapter 7 bankruptcy. In general, if your average income over the past six months is at or below the median income for a family of your size in Illinois, you can file Chapter 7.

If you have too much disposable income, you won't be able to file Chapter 7, but you may be able to file Chapter 13 bankruptcy, a reorganization plan that allows you to pay back your debt.

Are You Upside Down on Your Mortgage?

Because of the mortgage crisis, many more people are now able to file Chapter 7 bankruptcy. Do you owe more money on your home than you could sell it for? Did your mortgage payment balloon beyond your ability to pay? Please contact us to discuss your situation. Our lawyers will analyze your situation and help you find a solution to your financial problem.

The bankruptcy law attorneys of Serpe, Dizonno & Associates represent clients in DuPage County and Cook County, Illinois.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.