Since the banking crisis in 2008 there has been a steady increase in the numbers of businesses and individuals filing for Schaumburg chapter 7 bankruptcies.
If a business gets into debt, its creditors can force the company to file for bankruptcy protection under Schaumburg Chapter 7. In this case a trustee will be appointed by the courts to take control of the company. The trustee can choose to continue trading and work to pay off the debts, he may choose to sell parts of the business to other companies or he may choose to close the company, fire the employees and sell all the assets to pay off as much as possible of the debts.
If an employee gets into serious debt that they can no longer pay, due to changes in circumstances such as loss of employment, a reduction in pay due to changed employment circumstances they may seek bankruptcy protection. An individual Schaumburg chapter 7 bankruptcy does not clear all of the individual’s debt, as secured loans such as mortgages are protected and the home becomes the property of the mortgage holder. However the holders of secured loans are not allowed to share in the proceeds of the sale of other assets other than those securing their loan. During the bankruptcy process certain items are protected from sale by the trustees along with apportion of any income the debtor receives.
Bankruptcy is not granted to everyone under Schaumburg Chapter 7. The fundamental reason for the laws of bankruptcy is that one who is an “honest” debtor who is in debt so high that they do not have the ability to repay what is owed. Bankruptcy is a way to provide a new financial beginning for those who need to file bankruptcy once their debt is discharged. Not every one of your debts can be discharged. As a rule of thumb, the following debts will not normally be discharged:
* Income, state and property taxes
* Debts that are charged while engaged in misbehavior and or malevolent or unlawful actions by the debtor
* Student loans
* Criminal fines and penalties
* Spousal and child support
* Liability for injury or death that happens after drunk driving
* Non-dischargeable debts from any previous bankruptcy and/or forfeitures.
If an individual is given Schaumburg Chapter 7 protection, some of their assets are protected; these are a few of the protected items:
* Their primary residence
* 1 car up to a value of $3225
* Household items up to a total value of $10,775 with a maximum value of $525
* Jewelry up to a total value of $1225
* Tools of the debtors’ trade up to a value of $1850.
It is a requirement for individuals seeking Schaumburg Chapter 7 bankruptcy protection to attend debt counseling classes from a government approved organization within the 6 months before filing.
One of the major benefits of filing for Schaumburg chapter 7 bankruptcy is that your creditors will no longer be allowed to approach you for payment of a debt.
If you need help filing for a Schaumburg Chapter 7 bankruptcy please contact your local bankruptcy attorneys Ledford & Wu via their website. They provide free initial consultation.
