A Chapter 7 bankruptcy filing is often known as liquidation bankruptcy because it involves selling off property to pay off debts. Thankfully, many items are exempt from this liquidation—which allows households to keep many essential assets even after the court discharges their debts. In those instances, the bankruptcy trustee will not be able to touch most of the debtor’s important possessions.
Unfortunately, not all individuals qualify for a Chapter 7 filing. In order to successfully petition for the dismissal of unsecured loans, a household must earn less than the average annual amount of money within their respective state. This is known as the means test, and it was designed so that wealthy households could not take advantage of Chapter 7 while protecting their high-value assets.
We have eight locations throughout the Chicago area and have been helping households of all income levels make the most of their bankruptcy petitions since 1990. Call today to begin your debt-free life.