We are

Personal Injury Services


All About Chapter 7 Bankruptcy

Published on February 26th, 2020

Living with what feels like insurmountable debt can leave you overwhelmed and despairing. When you’re living paycheck-to-paycheck, creditor harassment may make it feel like you have no option but to skimp on necessities. If this sounds familiar, it may be time to consider filing for bankruptcy. Today we’ll be looking at the major features of this process.

What Does Filing Chapter 7 Look Like?

As soon as you file, creditors are legally obligated to stop contacting you over your debts. Those going through chapter 7 are appointed a case trustee by the court who will work with you and your lawyer to assess your financial picture, including a thorough evaluation of your property, and move to liquidate any qualifying assets. If there are no assets to liquidate, or an insufficient amount to repay creditors, creditors will not receive a complete payment.

Who is a Good Candidate?

Unemployed or under-employed individuals with little to no income may be good candidates for chapter 7. Those with a low amount of qualifying assets to liquidate should consider chapter 7, as there is less at stake to lose. If you team up with one of our lawyers in Rockford, they will work to help you reaffirm ownership of your property. Retaining as much property as possible will put you in a better position to rebuild after bankruptcy filings are complete.

What is a “Means Test”?

This is the formal process of evaluating the bankruptcy candidate’s financial status. Financial records will be pulled, including expenses and income, as well as secured and unsecured debts. The income limits vary by state. You may also need to meet a certain benchmark with your debt—some people will not have enough debt to qualify for bankruptcy. There’s a good chance you will qualify if your debts total more than half your income.

Common Misconceptions

While it is true that your credit score will take a beating, that doesn’t mean you will never be able to apply for credit again. Expect to pay higher interests for the duration that bankruptcy stays on your credit report, which will last for 10 years after you file. You should also be aware that filing for chapter 7 bankruptcy does not apply to all types of debt; debt created from alimony, child support, student loans, or taxes cannot be forgiven.

Hire a Lawyer in Rockford

If you’re weighing your options and seeking guidance on how to deal with your debt, we’re here to help. Our office provides free, no-obligation consultations to all potential clients.

Back to Blog

Call us now to get the legal advice you need.815-394-1776

Client Testimonials

After meeting with Mr. Crosby I feel that I have the information that I need to make the right decision.



Client Testimonials

Professional and personable. Tyler listened to us and explained everything thoroughly. It was nice to have someone who could understand and relate.

Regina Klikas


Client Testimonials

Very professional, straightforward and honest about options for my case.

Lyn Pond


Contact us Today! Call us at 815-394-1776 or submit