How can a Chicago Bankruptcy Attorney help me save my Stuff from my Creditors?

Posted September 5th, 2011 in Blog and tagged , , , , , , by admin

As a Chicago Bankruptcy Attorney, a regular concern I see when someone begins to consider bankruptcy is how they will be able to protect their stuff from creditors after they file bankruptcy.  This is a natural concern to have, and can sometimes make or break a case when determining if you can file chapter 7 Bankruptcy .  A skilled Chicago Bankruptcy Attorney will be able to help you figure out how best to protect your things.

Protecting Your Stuff is a Two-step Process that Your Chicago Bankruptcy Attorney Should Discuss with You before You File Bankruptcy.

When you begin discussing what it would take to qualify to file bankruptcy with your Chicago Bankruptcy Attorney you have to make sure that you do your part by disclosing everything that you have an ownership interest in.  Your Bankruptcy Attorney will then utilize Bankruptcy Exemptions to protect the things you own to the extent allowed.

Disclosing the Things You Own to Your Chicago Bankruptcy Attorney Helps You Protect it, and Keeps You Out of Trouble, too.

There are a couple of reasons that you want completely disclose everything you own to your Chicago Bankruptcy Attorney.  The first reason is that if you don’t list something of value when you file Bankruptcy, your Chicago Bankruptcy Attorney can’t protect it.  If it isn’t listed, then the Attorney can’t assert exemptions against it.  If the court were to determine that you intentionally tried to hide something that you own, you could lose your , or worse, you could be fined or sent to jail.  It’s just a better idea to discuss everything with your Chicago Bankruptcy Attorney that you own even if you only own a small portion of something.

Your Chicago Bankruptcy Attorney Will Protect Your Things Utilizing the Bankruptcy Exemptions Available to You.

Each state is different, but in Illinois your Chicago Bankruptcy Attorney can only use the Illinois Bankruptcy Exemptions when you file Bankruptcy.  Some states allow your Attorney to use the Federal Bankruptcy Exemptions as well, but Illinois has opted out of that exemption scheme.  As a result, your Bankruptcy Attorney has a limited power to protect the things you own.  He or she will apply the Illinois Bankruptcy Exemptions based on the property that you own.  Certain exemptions allow your Chicago Bankruptcy Attorney to protect a limited value in the property.  Which brings us to a very aspect to consider when you file Bankruptcy.

If Your Property Exceeds the Exemption Values Allowed, Your Chicago Bankruptcy Attorney will likely Suggest that You File a Chicago Chapter 13 Bankruptcy.

As I mentioned before, if your property has value/equity that exceeds the amount exempted under the Illinois Bankruptcy Exemptions, then your Chicago Bankruptcy Attorney should suggest that you consider a Chapter 13 Bankruptcy .  If you file a Chicago Chapter 7 Bankruptcy, and have value that exceeds the exemptions, then the Chicago Bankruptcy Trustee may try to sell that property to pay back your creditors.  A Chicago Chapter 13 Bankruptcy will allow you to protect that property which would have been unprotected otherwise.  This is a complicated analysis that can take some time to determine, and you will need to work closely with your Chicago Bankruptcy Attorney to make sure that you are properly protected.

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  2. says:

    [...] link: Chicago Bankruptcy Attorney can help your protect your things … ← The Pros & Cons About Filing for Bankruptcy | [...]

  3. says:

    [...] As I mentioned before, if your property has value/equity that exceeds the amount exempted under the Illinois Bankruptcy Exemptions, then your Chicago Bankruptcy Attorney should suggest that you consider a Chapter 13 Bankruptcy.  If you file a Chicago Chapter 7 Bankruptcy, and have value that exceeds the exemptions, then the Chicago Bankruptcy Trustee may try to sell that property to pay back your creditors.  A Chicago Chapter 13 Bankruptcy will allow you to protect that property which would have been unprotected otherwise.  This is a complicated analysis that can take some time to determine, and you will need to work closely with your Chicago Bankruptcy Attorney to make sure that you are properly protected.Source: lindsey-law.com [...]