Chapter 7

DuPage County Circuit Court Courthouse  |  Wheaton, Illinois

This article briefly discusses the most commonly used section of the U.S. Bankruptcy Code, Chapter 7. Court-supervised bankruptcy is appropriate when individuals or businesses can no longer pay their bills in a timely manner or their debts exceed the value of their nonexempt assets.

Representation In Chapter 7 Bankruptcy And Liquidating Debt

Petti Murphy & Associates provides personal, confidential debt relief. By filing a Chapter 7 bankruptcy petition, we can usually see to it that you do not have to give up your property ("exempt property"), but you can do away with all of your unsecured debt such as medical expenses, credit card debt, personal loans or loan guarantees, and trade and other business debt. Let us help you get the "fresh start" promised by the bankruptcy system.

The need for debt relief sometimes cannot be avoided. You should not be ashamed of asking for this help. If you have financial problems, you aren't alone. Literally millions of debtors file for bankruptcy each year, mostly under Chapter 7. A decline in the general economy or a business segment of our economy can bring a person or business down. Illnesses can bring surprise personal expenses that simply cannot be met. The statistics are overwhelming that many startup small businesses fail in the early years of their existence. Whatever the cause of your problems, bankruptcy filing can bring you the timely debt relief you need.

Petti Murphy & Associates specializes in Chapter 7 bankruptcy cases. We are a debt relief agency and help people file for bankruptcy under the U.S. Bankruptcy Code. Our services are available for consumer and business bankruptcies at fair and reasonable fees. Chapter 7 of the U.S. Bankruptcy Code is frequently called a liquidation proceeding, where you give up all of your nonexempt property in exchange for the elimination of all of your unsecured debt. You get to keep your exempt property, including, usually, your house and car. Our job as your bankruptcy attorneys is to optimize the application of your exemptions so your necessary property, including household goods, clothing, earnings, insurance benefits, retirement plans, cash, savings and other properties are kept.

Where your property is liened by a secured creditor, such as a real estate mortgage or a vehicle title loan, we can help you make your payments under less stress. This is done through use of a Reaffirmation Agreement with the creditor, and approved by the Bankruptcy Court. You get to keep the property.

For individual consumers to qualify for a Chapter 7, you must show your income is no greater than a "median income" threshold (we do the calculations for you), such that you do not have disposable income that could be used to pay off your debt by making extended installment payments in a Chapter 13 proceeding. Before your petition is filed, you must first attend, in person or online, a credit education course. About 30 days after your petition is filed, you must appear with your bankruptcy attorney at a creditors' meeting supervised by a Trustee assigned to your case. About 60 days after this meeting, if all goes well, all of your unsecured debt will be discharged. The "fresh start". However, you first will have had to attend a second class, a financial management class, prior to your final discharge.

Bankruptcy is a legal proceeding to assure both debt relief and equal treatment for unsecured creditors. Such legal protection avoids the race to the courthouse where the first and the fastest gets the most. Bankruptcy filings under the U.S. Bankruptcy Code are supervised by the U.S. Trustee's Office and the U.S. Bankruptcy Court, part of the federal court system. The U.S. bankruptcy laws are administered by the U.S. Trustee system, which is part of the Department of Justice. In limited circumstances, insolvency proceedings can be brought under state law, such as a business Assignment for the Benefit of Creditors ("ABC" proceeding). However, most often petitions are brought under the U.S. Bankruptcy Code, usually under Chapter 7. Let PETTI MURPHY & ASSOCIATES resolve your debt problems, help rebuild your credit, and bring you the peace of mind and fresh financial start you deserve.