CHAPTER 7 BANKRUPTCY DISCHARGE IN CHICAGO EXPLAINED

Chapter 7 Bankruptcy Discharge in Chicago Explained

Want to Know Which Debts Will Be Discharged in a Chapter 7 Bankruptcy?

A Chapter 7 Bankruptcy discharge can take care of money owed on credit cards, medical bills, personal unsecured loans and many other types of unsecured debt. Once you’ve received a bankruptcy discharge, you’re no longer legally required to pay any debts that have been discharged. A Chapter 7 lawyer in Chicago can sit down with you and explain which of your monthly obligations would be covered by this type of bankruptcy filing.

Debts That Will Be Discharged in a Chapter 7 Bankruptcy

Here are a few of the debts you’ll be eligible to discharge:

Attorney Fees (except child support and alimony awards)
Auto Accident Claims (except those involving drunk driving)
Business Debts
Civil Court Judgments
Collection Agency Accounts
Credit Card Charges
Dishonored Checks
Medical Bills
Money Owed Under Lease Agreements (includes past due rent)
Personal Loans from Friends, Family, and Employers
Repossession Deficiency Balances
Revolving Charge Accounts
Social Security Overpayments
Tax Penalties and Unpaid Taxes Past a Certain Number of Years
Utility Bills (past due amounts only)
Veterans Assistance Loans and Overpayments.

Tax Debt and Bankruptcy: When You Can Discharge a Debt?

You can wipe out debts for federal income taxes in Chapter 7 Bankruptcy only if all of the following conditions are true:

The taxes are income taxes.
You did not commit fraud or willful evasion.
The debt is at least three years old.
You filed a tax return.
Your income tax debt must have been assessed by the IRS at least 240 days before you file your bankruptcy petition, or must not have been assessed yet.

Can you Discharge Student Loan Debt?

Unless the Senate steps in, Federal student loan interest rates could double from 3.4% to 6.8%, leaving many struggling students in an even more precarious financial situation. This makes the ability to permanently discharge student loans more essential than ever.

Historically, student loans have been exempt from a bankruptcy discharge, meaning that your student debt remained to hound you until it was paid in full. Although this is still the case for the majority of former students, there is a ray of hope from a recent court decision that going forward, people who meet certain criteria will be able to discharge student loans in bankruptcy. In the mean time, this case is the exception, and it is typically not possible to discharge student loan debt in Chapter 7.

How Often Can You File?

According to the U.S. Federal Courts

“The court will deny a discharge in a later chapter 7 case if the debtor received a discharge under chapter 7 or chapter 11 in a case filed within eight years before the second petition is filed. The court will also deny a chapter 7 discharge if the debtor previously received a discharge in a chapter 12 or chapter 13 case filed within six years before the date of the filing.”

This means that you need to be sure the time is right and you are ready for a Chapter 7 Bankruptcy. Check with a Chicago attorney if you’d like to find out more.

H2 - Discharge Your Debt With a Chapter 7 Bankruptcy Filing in Illinois

Living a debt-free life really is possible after a Chapter 7 Bankruptcy discharge. The first step is to determine what your options are with the help of an attorney and create a road map to get you out of debt. At Suburban Legal Group PC, we can help you determine your eligibility in a means test, what your exemptions would be, and what debts you may discharge in Chapter 7.

Our goal at is to change your financial future, and we provide a reasonable fee and convenient monthly payment plans to help you achieve this. Request a Free Chapter 7 Consultation Today.