• FRS Law Group

    (Flinn, Ruble & Salazar)

    Elgin IL: 224-276-6641
  • FRS Law Group

    (Flinn, Ruble & Salazar)

    Sycamore IL: 630-202-1559
  • Donahue & Walsh, P.C.
    McHenry IL: 815-889-2364
  • Granger & Donahue
    Rockford IL: 779-203-9049
  • Cohen & Donahue
    Palatine IL: 847-452-5124
PI Attorneys of Northern Illinois

A Proven Leader In Illinois Criminal Defense And Real Estate Law

What you can and can't keep in Chapter 7 bankruptcy

There may be a lot of apprehension when it comes to filing for bankruptcy, which is understandable. Most people are already in a vulnerable place by the time they realize it is time to take action. One of the biggest concerns that people have is that they will lose everything they own, from their homes to their cars. This is a common misconception when it comes to Chapter 7 bankruptcy, so here is what people in Illinois can actually expect.

Unlike Chapter 13 bankruptcy in which filers create a three to five year payment plan, Chapter 7 involves selling off some of a person's personal property to pay off some of his or her debt. However, this only applies to non-exempt property. A person's exempt property will remain in his or her possession.

Non-exempt property are the assets that can be sold. For example, a person filing for Chapter 7 bankruptcy will likely have to part with expensive musical equipment if he or she is not a professional musician. Valuable collections and family heirlooms can also be sold, as can second properties or vehicles.

Exempt property is considered anything that is necessary for modern life. So while a person might have to part with a second vehicle, he or she can still keep a primary vehicle for things like work, education and more. Professional musicians can also keep the same expensive musical equipment that nonprofessionals have to part ways with. In general, someone's tools of trade will stay with him or her.

Realizing that it is time to take action about one's debt is an important but scary step. But it is not a step that anyone has to take alone. An experienced attorney who is knowledgeable in Illinois state law can usually provide invaluable guidance throughout the Chapter 7 bankruptcy process.

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Donahue &
Walsh, P.C.

FRS Law
Group

(FLINN, RUBLE & SALAZAR)

FRS Law
Group

(FLINN, RUBLE & SALAZAR)

Granger &
Donahue

Cohen &
Donahue

Palatine Office
800 E Northwest Highway
Suite 602
Palatine, IL 60074

Phone: 815-889-2364
Phone: 847-452-5124
Fax: 847-930-1135
Palatine Law Office Map

Elgin Office
2400 Big Timber Road
Suite 108
Elgin, IL 60123

Phone: 815-889-2364
Phone: 224-276-6641
Fax: 847-930-1135
Elgin Law Office Map

McHenry Office
4310 Crystal Lake Road
Suite C-D
McHenry, IL 60050

Phone: 815-322-9678
Phone: 815-889-2364
Fax: 815-344-8922
Map & Directions

Sycamore Office
145 S. Sacramento Street
Sycamore, IL 60178

Phone: 815-322-9678
Phone: 630-202-1559
Fax: 847-930-1135
Sycamore Law Office Map

Rockford Office
One Court Place
Suite 100
Rockford, IL 61101

Phone: 815-322-9678
Phone: 779-203-9049
Fax: 815-329-6768
Rockford Law Office Map