Chapter 7 Bankruptcy in Chicago Explained in 10 Steps

03-Mar-2011 Making the decision to file for chapter 7 bankruptcy in Chicago can be overwhelming. It is important to understand the process from the start.

These 10 steps will guide you through the chapter 7 bankruptcy in Chicago.

1. Free legal consultation - the first step is to meet with your Chicago bankruptcy lawyers and have the opportunity to ask your questions and they can determine if they think they can help you. Most Chicago bankruptcy lawyers offer free consultations so you can meet with more than one lawyer and choose the best one without spending a fortune.

2. Organize Your Accounts - the attorney you choose is going to need all kinds of documentation from you. They will need a copy of every bill as well as a principal balance on all loans. Addresses and contact information for all creditors will be required as well as basics like you and your spouse's social security numbers and residential and employment history including pay stubs. The better organized you are the more efficiently your Chicago bankruptcy lawyer can do their job.

3. Credit Counseling - it is a requirement that everyone filing for bankruptcy take a credit counseling class. These classes range in cost approximately $50 and online classes are available. Ideally the class should be taken at least 180 days prior to filing bankruptcy. The goal of the requirement is that less people will file for bankruptcy thanks to the class.

4. File for Bankruptcy - with the help of your bankruptcy lawyer all of your paperwork and documentation should be in order and ready to file with the bankruptcy court.

5. Bankruptcy Trustee - a trustee will be assigned to your case. Their job will be to liquidate your assets as a requirement of chapter 7 in Chicago.

6. Creditors Meeting - your trustee will arrange a meeting between you and your creditors. Your Chicago bankruptcy lawyers and trustee will be in attendance. At this meeting your creditors will want to discuss your filing and understand why bankruptcy is necessary. It is possible that a creditor could object to your filing and slow down the process. However this is not common in honest chapter 7 bankruptcy cases.

7. Debtor Education - after you file for bankruptcy you are required to take a debtor education course before you can be discharged. Similar to credit counseling courses are available online, over the phone or in person. The class typically costs between $50 and $100.

8. Discharge - a few months after you file for bankruptcy you will be discharged of your debts. The exceptions would be alimony or child support debts, student loan debt or unpaid taxes. These debts cannot be discharged and will still be your responsibility.

9. Credit Check - don't just assume your discharge was successful. You and your Chicago bankruptcy lawyers need to pull your credit report and ensure that all the debts you were discharged of are no longer showing up.

10. Fresh Start - once you have successfully been discharged of all your debts it's time to start rebuilding your financial profile. Obtain a credit card as soon as you can and start making a new financial footprint.

Chang and Carlin
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.