What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is also known as liquidation bankruptcy.  Unlike Chapter 13 bankruptcy, people who choose to file for Chapter 7 do not have to repay the debt they owe to their creditors.  Instead, their debt is discharged once they have successfully completed the bankruptcy process.  However, consumers who opt for this type of bankruptcy may have their assets liquidated.  This means that items of value like homes and cars will be sold for cash which is then turned over to creditors as a form of repayment. 

If you are thinking about filing for Chapter 7, know that you are not alone.  With so many individuals and families facing economic hardships such as job loss and high unemployment rates, more and more Americans are choosing to pursue this type of bankruptcy.

One of the wisest things you can do before you decide to file for Chapter 7 is to discuss your finances with a Chicago bankruptcy lawyer, like the lawyers at Bizar and Doyle.  To learn how our law office can help you file for Chapter 7 in Illinois, contact us now to set up a consultation.