There Are Three Main Reasons Why Somebody Would Want To File Chapter 7 Bankruptcy

File Chapter 7 Bankruptcy To Protect Property

The first reason why somebody would want to file Chapter 7 bankruptcy is if they have something they want to protect. What I’m talking about here is something of value that is subject to a taking if a bankruptcy case is not file. This could be wages. If someone is currently being garnished, the creditor can obtain up to 15% of the net income from the debtor. Until such time that the debtor actually files for bankruptcy, the creditor will continue to take the wages or a portion of the wages over time. Another scenario is where someone has a bank account that is subject to a seizure or a attachment. If a bankruptcy case is not filed, either all or a portion of what’s in that account can be taken and turned over to a creditor to satisfy a judgment.

File Chapter 7 Bankruptcy In Case Of Emergency

The second reason why somebody would file for bankruptcy is if there is some sort of emergency. An emergency could be a Sheriff sale on a home, a judgment for possession in an eviction case, or a license suspension or boot list on parking tickets. In these situations, the debtor has to file on an emergency basis to stop something from happening against him. If a Sheriff sale occurs, then the debtor has effectively lost the home. If a judgment for possession happens in an eviction, then there is technically no automatic stay so they must file bankruptcy prior to. In the case of a license suspension, if a case is not filed, that person can be subject to driving on a suspended license or having their vehicle booted and towed by the city of Chicago.

File Chapter 7 Bankruptcy For A Fresh Start

The third reason why somebody would want to file bankruptcy is to receive a fresh start. The person might be struggling financially for years with credit card debt, medical debt, auto deficiencies, personal loans, payday loans, debt owed to friends and family. If that person does not file for bankruptcy, then he or she is going to be in the same terrible cycle with no relief in sight. Imagine just making the minimum payments on your credit cards and having the debt hardly go down from month to month. Imagine receiving creditor calls because you can’t even make the minimum monthly payment on your credit cards. Imagine worrying about wage garnishments, bank citations, collection activity, lawsuits and other types of harassment from creditors day in and day out.

 

As you can see, there are many reasons to file for bankruptcy. The main reasons once again are having something to protect, if there is an emergency, and the desire to get a fresh start. For more information about filing for bankruptcy and getting a fresh start under chapter 7 of the United States bankruptcy code, you can contact my office at 847-520-8100. You will be treated with the utmost in respect and kindness. Nobody needs to struggle with debt. The laws are here to help you. You simply need to find the right bankruptcy attorney and take advantage of the existing laws that are out there to protect you and your family

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