Polski Adwokat Od Bankructwa w Chicago

Bezpłatna konsultacja.

Bankructwo
Chapter 7
(Rozdział 7)

$0 za start

Najszybsze Umorzenie
Długów:

Bankructwo
Chapter 13
(Rozdział 13)

$0 za start

Reorganizacja i Umorzenie Długów:

Przestań się martwić​.

Mówimy po polsku

Dzwoń teraz. Nie czekaj.

Spotkaj się z adwokatem Arturem Corbin który mówi po polsku i się specializuje tylko w prawie upadłośćowym.
  • Dowiesz się czy bankructwo Ci pomoże.
  • Dowiesz się czy się kwalifikujesz.
  • Dowiesz się jak wszystko działa.
Za darmo!

Informacja o Chapter 7

Chapter 7 jest federalną likwidacją. This means that you can file a case under chapter 7 of the Bankruptcy Code and start a liquidation proceeding in federal court.

During this proceeding, your valuable, unencumbered, and unexempt assets will be sold by a person called a chapter 7 trustee. The proceeds from the sale will be used to pay for the  costs of the sale, the trustee’s commission, and at least some of your debts. In exchange, any remaining balances on debts that qualify for a discharge will be eliminated.

The moment you file chapter 7 you will be protected by the “automatic stay.” The automatic stay is a provision in the Bankruptcy Code that prohibits creditors from taking collections actions against you and your property. This means creditors cannot call you, they cannot send you letters, and they cannot sue you in court. If they are already suing you in court, they must stop the lawsuit. The automatic stay goes into effect immediately — whether your creditors know it or not.

If creditors do not stop and continue collections actions against you or your property after they find out you filed your chapter 7 case, they can be sanctioned by the bankruptcy judge.

The automatic stay remains in effect until the bankruptcy judge lifts the automatic stay, your case is dismissed, or until you receive your discharge.

The automatic stay is also one of the main reasons why individuals and companies file bankruptcy.

The chapter 7 discharge, on the other hand, eliminates the contract you signed with your creditors and prohibits creditors from collecting the discharged debts. Once the contract is eliminated, it becomes unenforceable and you are no longer legally liable on the discharged debts.

To qualify for chapter 7 you must pass three tests.

The first test is called the “means test.” This test is a mechanical formula based on your household income. 

However, you pass the means test automatically if your household income is below the Illinois median income for the size of your household. Illinois median income is adjusted periodically.

The second test you must pass is called the totality of circumstances test. This is a practical test that considers all aspects of your situation to determine if you can pay back at least some of your debts.

The third and final test is the good faith test. This test is similar to the test above and basically asks the question of whether you are filing chapter 7 for the right reasons.

If you pass the three tests you are eligible to file under chapter 7.

You can file chapter 7 as often as you want. However, you can only get one chapter 7 discharge every 8 years. For example, if you filed chapter 7 bankruptcy on January 1, 2008, and received a discharge, you will not be eligible for another chapter 7 discharge until January 2, 2018.

If you are not eligible for a chapter 7 discharge, you can file under chapter 13 and obtain a discharge 4 years after the filing of your chapter 7 case.

Finally, you can also file chapter 13 at any time after your chapter 7 case  is closed (even less than 4 years after filing chapter 7) to take advantage of the bankruptcy automatic stay while you consolidate and pay back your debts (such as mortgage arrears) through the chapter 13 without getting a discharge.

A typical chapter 7 bankruptcy case where there are no assets to administer by the chapter 7 trustee generally takes about 4 months from start to finish. Keep in mind that it takes time to prepare your case for filing with the court.

When you file chapter 7, you have to disclose all your assets (anywhere in the world, even in Poland), all your debts, all your expenses, all your income, as well as all major financial and property transactions for up to 4 years, and in some cases up to 10 years.

Whether or not the chapter 7 discharge will eliminate all of your debt depends on the types of debts you have.

The good news is that most consumer debts such as personal loans, credit cards, lawsuit judgments, certain old unpaid taxes, etc. will be eliminated.

Common types of debts that will not be eliminated in chapter 7 include domestic support obligations (such as child support), recent unpaid taxes, government fines (such as parking tickets), student loans (unless you file and win a lawsuit inside of your bankruptcy case), and debts incurred through fraud or other bad acts such as drunk driving.

The impact chapter 7 will have on your credit score depends on what your credit looks like before you file your case.

If you have excellent credit, your credit score will drop significantly.

If your credit is already poor due to high balances and/or missed payments, your credit score may increase after the bankruptcy filing.

For most people, it is a lot easier to rebuild their credit score after filing chapter 7 than it is to fix the credit score by paying off their debts.

Rebuilding credit after bankruptcy is easy. This is especially true if you have good income and make a point to rebuild your credit. 

Creditors will extend credit because you no longer have any debts to worry about and you are not eligible for another chapter 7 discharge for 8 years.

Whether or not you will lose any assets if you file under chapter 7 depends on (1) the value of your assets, (2) whether or not the assets are encumbered by liens of other creditors, and (3) whether or not the asset is protected by exemption laws.

Keep in mind that the trustee will only be interested in assets that have market value and can be sold at a profit.

This is the case because it takes time and costs money to sell your assets.

For example, the trustee will not be interested in selling your beer stained couch because there will be no buyers.

On the other hand, if you own a home that has a value that is higher than your mortgage balance, the trustee may sell your home, pay off any the outstanding mortgage balance, and disburse the remaining proceeds to pay him or herself and your creditors.

Accordingly, it is crucial to analyze your assets prior to filing your chapter 7 case.

If you stand to lose an asset you want to keep, you should not proceed under chapter 7. You can file under chapter 13 and keep your asset, or you can choose not to file bankruptcy at all.

Chapter 7 will not eliminate the mortgage your bank has on your home.

This is because the chapter 7 discharge only eliminates the contracts you signed promising to pay back the debt to the creditor.

The mortgage will remain on the property until the loan is paid in full.

Whether or not you can keep your home in chapter 7 depends on two things.

First, if the value of your home is higher than the balance on your mortgage, the chapter 7 trustee can take and sell your home.

Second, even if the chapter 7 trustee is not interested in selling your home, you will only be able to keep your home after chapter 7 if you are current and stay current on your mortgage payments. If you are in default or cannot keep up with your payments during or after your chapter 7 bankruptcy case, the bank can foreclose on your home.

This is because the mortgage lien the bank has on your property survives the chapter 7 bankruptcy discharge.

If you are current and stay current on your car payments during and after your bankruptcy you can keep your car.

In such cases, you may need to enter into a reaffirmation agreement with your lender. Through the reaffirmation agreement you agree not to discharge the car loan in your bankruptcy.

Informacja o Chapter 13

Chapter 7 jest federalną likwidacją. This means that you can file a case under chapter 7 of the Bankruptcy Code and start a liquidation proceeding in federal court.

During this proceeding, your valuable, unencumbered, and unexempt assets will be sold by a person called a chapter 7 trustee. The proceeds from the sale will be used to pay for the  costs of the sale, the trustee’s commission, and at least some of your debts. In exchange, any remaining balances on debts that qualify for a discharge will be eliminated.

The moment you file chapter 7 you will be protected by the “automatic stay.” The automatic stay is a provision in the Bankruptcy Code that prohibits creditors from taking collections actions against you and your property. This means creditors cannot call you, they cannot send you letters, and they cannot sue you in court. If they are already suing you in court, they must stop the lawsuit. The automatic stay goes into effect immediately — whether your creditors know it or not.

If creditors do not stop and continue collections actions against you or your property after they find out you filed your chapter 7 case, they can be sanctioned by the bankruptcy judge.

The automatic stay remains in effect until the bankruptcy judge lifts the automatic stay, your case is dismissed, or until you receive your discharge.

The automatic stay is also one of the main reasons why individuals and companies file bankruptcy.

The chapter 7 discharge, on the other hand, eliminates the contract you signed with your creditors and prohibits creditors from collecting the discharged debts. Once the contract is eliminated, it becomes unenforceable and you are no longer legally liable on the discharged debts.

To qualify for chapter 7 you must pass three tests.

The first test is called the “means test.” This test is a mechanical formula based on your household income and hour expenses. 

However, you pass the means test automatically if your household income is below the Illinois median income for the size of your household. Illinois median income is adjusted periodically.

The second test you must pass is called the totality of circumstances test. This is a practical test that considers all aspects of your situation to determine if you can pay back at least some of your debts.

The third and final test is the good faith test. This test is similar to the test above and basically asks the question of whether you are filing chapter 7 for the right reasons.

If you pass the three tests you are eligible to file under chapter 7.

You can file chapter 7 as often as you want. However, you can only get one chapter 7 discharge every 8 years. For example, if you filed chapter 7 bankruptcy on January 1, 2008, and received a discharge, you will not be eligible for another chapter 7 discharge until January 2, 2018.

If you are not eligible for a chapter 7 discharge, you can file under chapter 13 and obtain a discharge 4 years after the filing of your chapter 7 case.

Finally, you can also file chapter 13 at any time after your chapter 7 case  is closed (even less than 4 years after filing chapter 7) to take advantage of the bankruptcy automatic stay while you consolidate and pay back your debts (such as mortgage arrears) through the chapter 13 without getting a discharge.

A typical chapter 7 bankruptcy case where there are no assets to administer by the chapter 7 trustee generally takes about 4 months from start to finish. Keep in mind that it takes time to prepare your case for filing with the court.

When you file chapter 7, you have to disclose all your assets (anywhere in the world, even in Poland), all your debts, all your expenses, all your income, as well as all major financial and property transactions for up to 4 years, and in some cases up to 10 years.

Whether or not the chapter 7 discharge will eliminate all of your debt depends on the types of debts you have.

The good news is that most consumer debts such as personal loans, credit cards, lawsuit judgments, certain old unpaid taxes, etc. will be eliminated.

Common types of debts that will not be eliminated in chapter 7 include domestic support obligations (such as child support), recent unpaid taxes, government fines (such as parking tickets), student loans (unless you file and win a lawsuit inside of your bankruptcy case), and debts incurred through fraud or other bad acts such as drunk driving.

The impact chapter 7 will have on your credit score depends on what your credit looks like before you file your case.

If you have excellent credit, your credit score will drop significantly.

If your credit is already poor due to high balances and/or missed payments, your credit score may increase after the bankruptcy filing.

For most people, it is a lot easier to rebuild their credit score after filing chapter 7 than it is to fix the credit score by paying off their debts.

Rebuilding credit after bankruptcy is easy. This is especially true if you have good income and make a point to rebuild your credit. 

Creditors will extend credit because you no longer have any debts to worry about and you are not eligible for another chapter 7 discharge for 8 years.

Whether or not you will lose any assets if you file under chapter 7 depends on (1) the value of your assets, (2) whether or not the assets are encumbered by liens of other creditors, and (3) whether or not the asset is protected by exemption laws.

Keep in mind that the trustee will only be interested in assets that have market value and can be sold at a profit.

This is the case because it takes time and costs money to sell your assets.

For example, the trustee will not be interested in selling your beer stained couch because there will be no buyers.

On the other hand, if you own a home that has a value that is higher than your mortgage balance, the trustee may sell your home, pay off any the outstanding mortgage balance, and disburse the remaining proceeds to pay him or herself and your creditors.

Accordingly, it is crucial to analyze your assets prior to filing your chapter 7 case.

If you stand to lose an asset you want to keep, you should not proceed under chapter 7. You can file under chapter 13 and keep your asset, or you can choose not to file bankruptcy at all.

Chapter 7 will eliminate your liability on the loan you took from the bank and the bank will not be able to sue you to make you pay. But the actual mortgage lien your bank has on your home will not be eliminated.

This is because the chapter 7 discharge only eliminates the contracts you signed promising to pay back the debt to the creditor. Security interests, such as mortgages, survive the chapter 7 bankruptcy case and will remain on your property until the loan is paid in full or the property is foreclosed.

If you are behind on your mortgage and you are trying to save your home, you need to look into chapter 13 bankruptcy which is designed to reorganize your financial situation. Whereas chapter 7 is a liquidation through which the goal is to get a fresh start (start over), not to reorganize.

Whether or not you can keep your home in chapter 7 depends on two things.

First, if the value of your home is higher than the balance on your mortgage, the chapter 7 trustee can take and sell your home.

Second, even if the chapter 7 trustee is not interested in selling your home, you will only be able to keep your home after chapter 7 if you are current and stay current on your mortgage payments. If you are in default or cannot keep up with your payments during or after your chapter 7 bankruptcy case, the bank can foreclose on your home.

This is because the mortgage lien the bank has on your property survives the chapter 7 bankruptcy discharge.

If you are current and stay current on your car payments during and after your bankruptcy you can keep your car.

In such cases, you may need to enter into a reaffirmation agreement with your lender. Through the reaffirmation agreement you agree not to discharge the car loan in your bankruptcy.

How to analyze your situation to see if bankruptcy will help.