Is Liquidation Bankruptcy Right for Me?

Struggling with debt is one of the most stressful experiences in a person’s life, and it can be difficult to know what options may be available to you. If you are unable to pay your bills and debts are piling up, you might be considering consumer bankruptcy. If so, you might know that there are different types of personal bankruptcy and that individuals most often file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. These are very different types of bankruptcy, so it is important to understand the differences. Chapter 13 bankruptcy is a kind of reorganization bankruptcy that is commonly known as a wage earner’s plan, while Chapter 7 bankruptcy is a kind of liquidation bankruptcy. Is liquidation bankruptcy right for you?

Before you make any decisions about filing for bankruptcy, you should discuss your specific circumstances with a bankruptcy lawyer in Oak Park. In the meantime, if you are wondering if liquidation bankruptcy is right for you, consider the following questions.

Do You Qualify for Chapter 7 Bankruptcy?

When you are thinking about liquidation bankruptcy as an individual, the first question you need to consider is: do I qualify for Chapter 7 bankruptcy? It is important to know that the eligibility requirements for Chapter 7 bankruptcy differ between businesses and individuals. For an individual to be eligible for Chapter 7 bankruptcy according to U.S. bankruptcy law, that person will usually need to pass the “means test.” This test is designed to show that the individual’s assets and income are low enough for liquidation bankruptcy to make sense. A bankruptcy lawyer can assess your current financial circumstances to help you understand whether you are likely to be eligible for Chapter 7 bankruptcy.

Are Your Debts (Mostly) Dischargeable?

Many types of consumer debts are dischargeable, but some are not. Before you decide whether liquidation bankruptcy is right for you, it will be critical to determine whether the liquidation of your non-exempt assets will result in a discharge of all (or at least most) of your existing debts. If your debts are non-dischargeable, you will not want to go through the process of having non-exempt assets liquidated.

Are Your Most Important Assets Exempt?

Finally, are your most important assets exempt? All non-exempt assets will be liquidated in a Chapter 7 bankruptcy. Accordingly, you will want to discuss the Illinois bankruptcy exemptions with an attorney to ensure that the property you most want (and need) to keep will be exempt and not subject to liquidation. If you are not eligible to exempt assets that are particularly important to you, a liquidation bankruptcy may not be the best option. However, if you can exempt those assets, then you will be able to keep that property while other non-exempt property is liquidated so that you can receive a discharge of your debts.

Contact an Oak Park Bankruptcy Attorney

When you are considering Chapter 7 bankruptcy or have questions about liquidation bankruptcy in Illinois, it is important to speak with an experienced Oak Park bankruptcy lawyer about your case. Our firm can assist you with all aspects of your consumer bankruptcy case, and we can answer any questions you have today. Contact the Emerson Law Firm for more information about the bankruptcy services we provide.


See Related Blog Posts:

What Property Can I Keep if I File for Chapter 7 Bankruptcy?

Is Now the Right Time to File for Consumer Bankruptcy?

Comments

Post a Comment

Popular posts from this blog

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti
Read more

Learning About Different Types of Wills

Whether you are young or old, single or married, wealthy or with limited financial means, healthy or dealing with a medical condition, it is important to make a will. Many people have incorrectly heard that wills are only necessary for particular people, such as those with a substantial amount of assets or for older adults in poor health. Yet wills are critical for adults of all ages, and an experienced Oak Park estate planning lawyer can help you to make one. Before you begin working with a lawyer on a will, you might start conducting your own research into wills in Illinois and the requirements for a valid will. In so doing, you are likely to come across information about many different types of wills, and you are probably going to wonder whether you will need more than one kind of will. In short, there are different terms that can be used to describe the form or function of a will, as well as some distinct types of wills. Our Oak Park estate planning attorneys can explain in more
Read more

Younger Parents Need an Estate Plan

It is critical for younger parents to have an estate plan, even if they know they are healthy and do not anticipate that anything will happen in the near future. Much too often, younger parents assume that they can wait until they are older to consider estate planning or until there is a health-related reason to begin the estate planning process. Yet estate planning is critically important for parents who have minor children. While estate planning is important for adults of all ages, it can allow parents to make important decisions about who will care for their children in the event that they become unable to do so themselves. Our Oak Park estate planning lawyers can explain in more detail. Naming a Guardian for Your Minor Children in Your Will Most importantly for younger parents, making a will allows you to name a guardian who can care for your child in the event of your unexpected death. Nobody anticipates a deadly accident or a sudden situation in which there is a need for another
Read more