If you are struggling to pay your bills, you may have considered filing Chapter 7 bankruptcy, believing that you can simply wipe out all your debt. There are restrictions on what debts can be permanently discharged in a Chapter 7 proceeding. You want an experienced bankruptcy attorney to help you understand the guidelines, so that you can determine if Chapter 7 is right for you. This page sets forth some of the basic principles regarding which debts are eligible for discharge.
At the Debra Levine Law Offices, we have assisted men and women with Chapter 7 bankruptcy filings since 1996. We see a personal bankruptcy petition as more than just a chance to get a fresh start: We view it as the first step in a new financial direction, providing you the opportunity to build a secure financial future. In more than 14 years in practice, we have helped thousands of people in Illinois move toward financial health through the personal bankruptcy process.
What Debt Can I Discharge in Bankruptcy?
In a Chapter 7 filing, you can permanently discharge unsecured debts such as medical bills and credit card obligations. You cannot wipe out debts secured by collateral, such as homes, cars, boats or other similar items, and still keep the property.
Other types of debts are excluded from eligibility for discharge under Chapter 7. You cannot, generally, eliminate student loans in a Chapter 7 petition, and child support arrearages are not subject to discharge. In addition, tax obligations may only be eliminated under certain circumstances.
If you file for Chapter 7 bankruptcy, you may be eligible to file for Chapter 13 bankruptcy at any point in the future.
When you hire us to help you determine whether a Chapter 7 bankruptcy is right for you, we will make certain you know what debts can be discharged before you file, so that you get the full benefits of the process. We will also explain what property you can keep under Chapter 7.
Contact Our Office
We offer a free, initial consultation. To schedule an appointment, contact our office online or call us at 312-957-8408 (toll free at 866-832-0854). Evening and weekend meetings can be arranged, upon request. We answer our phones 24 hours a day, seven days a week.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
