Not All Debt is Discharged Under Chapter 7

While filing for bankruptcy can eliminate a large chunk of debts owed, there are still several circumstances that are not covered by bankruptcy. These include but are not limited to: a majority of student loans, child support, recent back taxes, alimony, fraudulent debts, recent large purchases of luxury items, penalties from government services and cash advances over $825 (that were obtained with 70 days of filing for bankruptcy.)

If these items do not apply to you or you still wish to file for bankruptcy in the state of Illinois you must decide between two different types of bankruptcy.Chapter 7, also known as straight bankruptcy, allows you to eradicate all debts except for the aforementioned circumstances. The other option is Chapter 13, or wage earner bankruptcy, which lets you create a repayment plan to back your debts over a period of several years without penalty.

Considering bankruptcy as a solution to your financial problems? Contact our law firm now to consult with a Chicago bankruptcy lawyer.