Chicago Bankruptcy Attorney Blog

How a chapter 7 bankruptcy case works in Du Page County.

All cases start with an analysis of the debtor's situation,

Is a chapter 7 case appropriate?

If so, we need certain information.

1. Has another chapter 7 case been filed within the last 8 years?
2. How many people live in the debtor's household?
3. How much is the debtor's household income?
4. Are there assets that cannot be protected by a chapter 7 bankruptcy?

If we get appropriate answers, then we do a further analysis. Let's assume everything checks out.

First you must take a credit counseling class. The class cost $50.00 and it takes less than two hours to do it on the internet. Most of our clients take the class at www.yourbankruptcypartner.com,

After that our office prepares the petition, schedules, CMI and statement of financial affairs for your review. If these documents are correct, you sign a declaration regarding electronic filing.

When then file the bankruptcy documents electronically with the bankruptcy court.

When the documents are filed we are given a case number and assigned a case trustee.

A 341 meeting (meeting of creditors) is set 20 to 40 days later. The meeting is held at the DuPage County Courthouse 521 N. County Farm Road, Wheaton, IL 60187 on the 2nd floor.

You are required to appear at the meeting. Either I, or someone from my office will also be there. At the meeting the case trustee will ask you questions about you assets, liabilities, income and expenses. The trustee will be looking for assets to pay off creditors. A great majority of our clients have no assets and at the end of the meeting there is a finding of no assets.

You are then required to take another class on the internet. This one costs $35.00 and takes about an hour.

8 weeks after the 341 meeting your case you will receive your chapter 7 discharge and the case is concluded.

Call or email us if you have any questions.

Joe Michelotti

630 928 0100
joe@michelottilaw.com
www.michelottilaw.com

For most people a chapter 7 case will cost about $2100.00. A Chapter 13 case will cost about $3800.00.

Cost are divided into This is divided into 4 parts

One:

Filing Fees

Filing fees for a chapter 7 bankruptcy are $299.00. Filing Fees for a Chapter 13 case are $274.00

Two:

Classes

Prior to filing a consumer bankruptcy you need to take a credit counseling class. There are generally done over the internet and take about an hour. They cost between $35.00 and $50.00.

Before the bankruptcy is completed you must also take a debtor education class. This is also done over the internet and costs between $15.00 and $50.00.

Three:

Attorneys Fees

This is the part with the most variance. Each case is unique and presents different problems.

In a chapter 7 case in the Northern District of Illinois our base fee is $1800.00. Some clients have cases where we know there will be much extra work and those cases will involve additional fees.

Some cases are extremely simple and we may deduct part of the fee.

In a Chapter 13 case, fees are allowed by the court. In the Northern district of Illinois, there is a "no look" fee statute of $3500.00. These fees are usually worked into the plan.

Please let us know if you need any more information.

Joe Michelotti

630 928 0100

www.michelottilaw.com

Contact a Chicago Bankruptcy lawyer Now

As Chicago Bankruptcy attorneys we are often asked whether a house can be sold for a small amount of money to a relative or a friend in order to avoid losing it after a chapter 7 filing.

The answer is no. You cannot transfer property to another person unless you receive its cash value.

This is especially true if you make the transfer to a family member, If you make a transfer and do not receive enough value (ie money) the the transaction can be undone

There are many legitimate ways to protect your family home.

- Check its value on zillow.com. It may not be worth as much as you think.

- look at how you hold title. If its tenants by the entireties, you may want to consider only one spouse filing a bankruptcy.

- use you bankruptcy exemptions. A married couple has a $30,000.00 exemption

- consider filing a chapter 13 rather than a chapter 7. Costs may be more, but you can keep the house.

- remember to subtract the costs of sale. These can equal up to 10% of the value of the house.

- you might want to consider using up existing lines of to make necessary purchases *** use caution as this can get you into trouble ***

The point is there are many legitimate ways to protect your home, but you need to talk to a lawyer who can give you all of the options

Contact a Chicago Bankruptcy Attorney Now