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

While it is true that you could file for bankruptcy protection as often as you would like, the October 17, 2005 changes to the bankruptcy code limit the frequency of bankruptcy discharge. The attorneys at Michelotti & Associates know the limitations and can help plan for recovery within the proper time limitations to obtain the best protection for clients in Chicagoland's Cook and DuPage Counties.

Chapter 7 bankruptcy protection is otherwise known as a straight bankruptcy liquidating debts. An individual may discharge debt more than once. Debtors cannot obtain a discharge in a Chapter 7 bankruptcy within 8 years of a preceding filing for Chapter 7 discharge, or within 6 years of a preceding filing for Chapter 13 discharge.

Chapter 13 bankruptcy is also often referred to as Wage Earner Bankruptcy. When a Chapter 13 petition is filed, the trustee of the Bankruptcy Court approves a rehabilitation plan to get back on track to repay the debts instead of having them discharged. Debtors cannot obtain a discharge in a Chapter 13 bankruptcy within 4 years of a preceding filing for Chapter 7 discharge, or within 2 years of a preceding filing for Chapter 13 discharge.

Additionally, there are limitations that have been placed on automatic stay provisions for debtors that are considered serial filers. The bankruptcy code offers protection for individuals who take advantage of the debt relief protection provisions on multiple occasions. Some debtors who file multiple times and are subject to scrutiny may be small business operators. To best determine your options under the current law please contact one of the Attorneys at Michelotti & Associates today.

For more information about bankruptcy protection please view our blog archive below.
E-mail Bankruptcy Attorney Joe Michelotti.

For more information please visit our web site.

The headlines are showing bad economic times. Head lines in the Chicago area from Joliet to Aurora, to Naperville to Cicero show how hard a time people are having.

Bankruptcy is a legal proceeding for people whose can no longer pay their debts.

It is governed by federal law, but cases a filed locally in Cook County, DuPage County Kane County. Bankruptcy gives a person the ability to get a fresh financial start. If you are having financial difficulties in Schaumburg, Wheaton, Berwyn or Oak Park, it is something you may want to consider.

When a Chapter 7 bankruptcy case is filed all attempts to collect on debts must stop. That means our clients from Downers Grove, Elmhurst, Lombard, Addison, Elk Grove, Glendale Heights, Woodridge, and Glen Ellyn are protected from any attempts to collect on a debt. This includes collections, lawsuits, garnishments and levies. No one can call you, harass you, or threaten you in any way.

Even the IRS must stop all attempts at collection until things are sorted out. This has worked out very well for many of our clients from such places as Westmont, Roselle, Darien, Villa Park, Lisle, Brookfield, Hinsdale, Westchester, La Grange, Wood Dale, La Grange Park and Western Springs

Check out our website for more info