Chapter 7 and Your Creditors

Although Chapter 7 bankruptcy does enable you to erase most of your debts, your creditors will still be given the chance to fight for your money.

This dismissal of debts, known as a "discharge," is generally granted automatically at the end of a successful Chapter 7 bankruptcy filing. A discharge is a legal order that not only wipes out your debts, but prevents creditors from harassing you any further about them. Should one of your creditors file a "challenge" against your bankruptcy case, you may have to prove yourself in a court of law. This usually only happens when a creditor believes that you have committed fraud or been dishonest about your bankruptcy documents.

Examples of such dishonesty include making false statements, hiding assets and/or failing to show up in court for your bankruptcy hearings. Should the creditors challenge be upheld in a court of law, your discharge will be overturned, thus making you responsible once again for all of your debts.

Need help filing for Chapter 7 in Illinois? Contact us to work with a Chicago bankruptcy attorney.