CHAPTER 7 BANKRUPTCY BASICS

Chapter 7 Bankruptcy is a process provided for under United States federal bankruptcy law by which you are entitled to a fresh start.

Chapter 7 Bankruptcy may eliminate most kinds of unsecured debt. Some examples of unsecured debts are credit cards; medical bills; most personal loans; judgments resulting from car accidents; and deficiencies on repossessed vehicles.

In addition to getting rid of your debt, you can typically keep all your property. If you have no equity in your property and you are current with your car and mortgage payments, you can keep this property.

In many cases, a Chapter 7 Bankruptcy filing allows you to keep your home and car, eliminate your debt, and obtain a fresh start.

    Stop Creditor Harassment
    Stop Garnishments
    Restore Your Driver’s License
    Maintaining Your Credit
    Reaffirmations
    Paying the Right Low Fee
    Stop Creditor Harassment

We can stop all creditor harassment, whether your creditors are calling you, your work, or your family. Upon hiring Staver & Gainsberg, we provide you with immediate assistance in stopping any harassing call. You also no longer need to make any payments to many of your creditors.

Stop Garnishments

A garnishment takes hard-earned wages away from you and your family and allows creditors to obtain these wages. A Chapter 7 Bankruptcy stops garnishments immediately upon filing the case and allows you to regain your wages for you and your family.

Restore Your Driver’s License

Your driver’s license may be suspended because you were in an accident. A Chapter 7 Bankruptcy filing allows you to regain your license and end the suspension. If your driver’s license is suspended for some other reason, please contact our office so that we can discuss the benefits of Bankruptcy and the assistance it provides in regaining your driver’s license.

Maintaining Your Credit

Another rumor that your creditors spread is that bankruptcy will ruin your credit for ten years. That is not true either. First of all, your credit is probably already damaged (or will be soon) because you have too much debt and cannot pay your bills on time.

In fact, most of the time it is easier to borrow money after a bankruptcy because you now have the ability to pay your bills again. After you file for bankruptcy, your credit report will show that you are up-to-date on your bills that you want to keep, such as your car or your house; and it will show that you do not owe a dime on the debts you included in your bankruptcy. Therefore, you will have more disposable income, which will make it easier to get more credit right away.

In addition, most people don't realize that the negative credit history that occurred before their bankruptcy will usually hurt them more than the bankruptcy itself.

By receiving a discharge in bankruptcy and eliminating your unsecured debt, you may actually improve your credit and credit score. Please remember even though it is possible to get credit after a bankruptcy, your prior credit history will cause lenders to probably charge you a higher interest rate.

Reaffirmations

In order to keep your car and your house, most mortgage lenders and finance companies offer individuals in bankruptcy the right to reaffirm the debt. A reaffirmation means that you agree to be responsible for the debt after bankruptcy and thus the debt survives a discharge.

A reaffirmation is often encouraged for:

• Those clients that can both afford their house and car payments and want to keep their assets.
• For those individuals that do not have a lot of disposable income for their monthly payment, other options exist to allow the asset to be retained or, if necessary, surrendered

Finance companies want to be paid and do not like to initiate foreclosure proceedings or repossessions. Staver & Gainsberg will help you make all the arrangements to keep your house or car or to instruct you as to the best option toward these assets.

Staver & Gainsberg

At Staver & Gainsberg, we are here to answer all your questions about your credit and assist you in making the right credit choices. Many consumer debtors receive numerous offers of credit after filing. Every consumer debtor has to be cautious about what debt to undertake after filing and what burden that debt will place on the individual consumer’s budget.

Bankruptcy is about a fresh start and here at Staver & Gainsberg we strive to make sure that each client receives the best fresh start possible.

Paying the Right Low Fee

Everyone considering bankruptcy has to discuss with any potential attorney the amount of fees that will be charged. Staver & Gainsberg prides itself an offering a low, competitive flat fee rate for a Chapter 7 Bankruptcy case. We also offer payment plans and low down payments.

We constantly work with our clients to make sure our fee is reasonable, fair, and not burdensome. We guarantee not to exceed any quoted fee and we do not have any hidden fees.

Disclaimer: The information provided pertains to Chapter 7 and Chapter 13 consumer bankruptcy as it relates to this practice in Illinois. Bankruptcy law is generally federal law. Laws in Illinois are going to be similar (but not exactly the same) to laws anywhere in the country. However, this information only applies to Chapter 7 and Chapter 13 consumer debt and no other type of bankruptcy. Additionally, this information is not intended as a legal opinion or legal advice at all. The facts of every case are different and give rise to issues that may not even be discussed here. You are urged to consult an attorney who is licensed to practice in your area before you take any action.