Chapter 7

Chapter 7 Bankruptcy – A Fresh Financial Start

If overwhelming debt is making it impossible to keep up with your bills, Chapter 7 bankruptcy may offer the fresh start you need. At Garcia Law, we guide clients throughout Chicago and the surrounding suburbs through the Chapter 7 process to eliminate qualifying debts and rebuild their financial future.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often called “liquidation bankruptcy,” allows individuals to eliminate most unsecured debts, including:

Credit card balances
Medical bills
Personal loans
Utility bills
Certain judgment debts

In most cases, clients can keep essential property like their home, car, and household belongings through Illinois’ bankruptcy exemptions.

Who Qualifies for Chapter 7?

Eligibility for Chapter 7 is determined by a means test, which compares your income to the Illinois median income for your household size. You may qualify if:

Your income is below the state median, or
Your disposable income is too low to repay your debts under Chapter 13

Our office can quickly determine whether you meet the Chapter 7 requirements during your free consultation.

The Chapter 7 Process

Consultation & Evaluation – We review your debts, income, and assets to confirm Chapter 7 is right for you.
Filing Your Petition – Our team prepares and files all required paperwork with the U.S. Bankruptcy Court.
Automatic Stay Protection – As soon as your case is filed, creditor collection efforts must stop, including calls, wage garnishments, and lawsuits.
Meeting of Creditors – You attend a short meeting (usually 5–10 minutes) with the trustee to verify your information.
Debt Discharge – About 3–4 months after filing, qualifying debts are permanently wiped out, giving you a clean slate.

Benefits of Filing Chapter 7

Eliminate most unsecured debts permanently
Stop creditor harassment immediately
Protect your wages from garnishment
Rebuild credit faster than you might expect
Peace of mind knowing you’ve taken control of your finances

Take the First Step Toward Relief

You don’t have to live under the weight of unmanageable debt. Attorney Garcia has helped countless Chicago-area clients use Chapter 7 to break free from debt and start fresh.

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