Chicago Chapter 7 Bankruptcy Filers With Incomplete Information May Have Discharge Contested

09-Mar-2011 When you file for chapter 7 bankruptcy in Chicago you run the risk that a creditor may contest your claim for bankruptcy and delay or deny your discharge.

There are two reasons why discharge may not be granted for someone who qualifies for chapter 7 bankruptcy.

1. Incomplete or incorrect paperwork

This commonly happens when someone tries to file for bankruptcy without a Chicago bankruptcy lawyer. Saving money on a lawyer will usually cost you more in the end. A judge will not be sympathetic to someone filing chapter 7 bankruptcy who has not done their homework and prepared all the necessary paperwork for the process.

2. Creditors contest discharge

Creditors are fully informed of your decision to file for chapter 7 bankruptcy in Chicago. They are given 60 days after you have filed to contest your claim for bankruptcy. It is commonly thought that creditors will dispute a bankruptcy filing because they are concerned they won't get the money that is owed to them. In reality they will dispute a bankruptcy filing when it appears that a debtor has been dishonest about their assets or ability to pay their debts. The motive of the creditors is to keep the bankruptcy system honest and fair for everyone. Creditors have insurance to protect them when a debtor files for bankruptcy so they are not as concerned about the loss of money from the debtors discharge.

The best way to ensure that your bankruptcy filing isn't disputed is to enlist the help of a qualified Chicago bankruptcy lawyer. They will take on the responsibility of all the required paperwork and make sure everything is in order.

Additionally, if you are 100% honest with your Chicago bankruptcy lawyer about your financial situation then it is unlikely that you will be blind sided by a dispute from a creditor.

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.