Advantages & Disadvantages

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When considering Chapter 7 bankruptcy, you will want to meet with an experienced bankruptcy attorney to fully understand how this type of bankruptcy will impact you. If you pass the Means Test for Chapter 7 bankruptcy, you will want to take the time to consider the advantages and disadvantages of a Chapter 7 bankruptcy prior to filing.

Advantages to a Chapter 7 Bankruptcy:

  • You receive a fresh start. After the bankruptcy is discharged, the only debts you owe will be for secured assets on which you choose to sign a "Reaffirmation Agreement" and any debts excluded from a Chapter 7 discharge.
  • Creditor's collection efforts and wage garnishment attempts are immediately stopped on the date of bankruptcy filing.
  • Except for inheritances, any income you earn and property you acquire after the bankruptcy filing date are yours.
  • There is no minimum amount of debt required to file this type of bankruptcy.
  • Your case is often over (discharged) in about three to six months.

Disadvantages to a Chapter 7 Bankruptcy:

  • The Trustee will sell any non-exempt property you own. If you want to keep a secured asset, such as a car or home, and it is not completely covered by your bankruptcy exemptions then Chapter 7 is not an option.
  • The automatic stay created by filing Chapter 7 Bankruptcy only serves as a temporary defense against foreclosure.
  • Co-signors of a loan can be stuck with your debt unless they also file for bankruptcy protection.
  • A Chapter 7 bankruptcy can only be filed once every eight (8) years.

These are general guidelines. Every situation is different and your circumstances will determine which type of bankruptcy, if any, is the best decision for you. To learn about the options available to you, use the form below or call an office near you to schedule your FREE Consultation with a bankruptcy attorney. You will not spend a dime to get the legal advice you need to make such an important decision!

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O'Fallon, IL Bankruptcy Attorney

1 Eagle Center, Suite #3A
O'Fallon, IL 62269

(618) 235-9800 Office

(618) 235-9805 Fax


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Mt. Vernon, IL Bankruptcy Attorney

4140 Broadway
Mt. Vernon, IL 62864

(618) 235-9800 Office

(618) 235-9800 Fax


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Marion, IL Bankruptcy Attorney

4501 W DeYoung Street, Suite 208
Marion, IL 62959

(618) 235-9800 Office

(618) 235-9800 Fax


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Carrollton, IL Bankruptcy Attorney

522 N. Main Street
Carrollton, IL 62016

(618) 235-9800 Office

(618) 235-9800 Fax


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Granite City, IL Bankruptcy Attorney

1600 Pontoon Road, Suite B
Granite City, IL 62040

(618) 235-9800 Office

(618) 235-9805 Fax


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Effingham, IL Bankruptcy Attorney

304 E Jefferson Ave., Suite D
Effingham, IL 62401

(618) 235-9800 Office

(618) 235-9805 Fax


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Belleville, IL Bankruptcy Attorney

7012 W Main Street
Belleville, IL 62223

(618) 235-9800 Office

(618) 235-9805 Fax


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Mounds, IL Bankruptcy Attorney

429 S Blanche Street, Suite 2A
Mounds, IL 62964

(618) 235-9800 Office

(618) 235-9805 Fax


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Salem, IL Bankruptcy Attorney

2721 S. Broadway (Rt. 37 South)
Salem, IL 62881

(618) 235-9800 Office

(618) 235-9805 Fax


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Red Bud, IL Bankruptcy Attorney

205 E. Market Street
Red Bud, IL 62278

(618) 235-9800 Office

(618) 235-9805 Fax


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Olney, IL Bankruptcy Attorney

101 S. Elliott Street
Olney, IL 62450

(618) 235-9800 Office

(618) 235-9805 Fax


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Alton, IL Bankruptcy Attorney

307 Henry St., Suite 300
Alton, IL 62002

(618) 235-9800 Office

(618) 235-9805 Fax


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Edwardsville, IL Bankruptcy Attorney

2110 Troy Road, Suite G
Edwardsville, IL 62025

(618) 235-9800 Office

(618) 235-9805 Fax


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Carmi, IL Bankruptcy Attorney

101 S Church St.
Carmi, IL 62821

(618) 235-9800 Office

(618) 235-9805 Fax


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