Chapter 7 Bankruptcy

Bankruptcy FAQ: In this article, our Illinois bankruptcy attorneys answer questions that are frequently asked about bankruptcy. Bankruptcy is a legal process designed to help individuals and corporations liquidate or restructure their debts. Most consumers will file either a Chapter 7 or Chapter 13 bankruptcy. The other types are generally for corporations, farms, and even governmental entities.

If you’re facing mounting debt and mounting uncertainty, bankruptcy provides a powerful tool to reset your financial situation and get creditors off your back. It suspends creditors from continuing to collect via telephone harassment, wage garnishment, lawsuits, collection letters, etc. Depending on the type of bankruptcy it can also wipe out many types of debt, including medical bills, credit card payments, personal loans, and more.

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For many, the idea of filing for bankruptcy after retirement may sound absurd. The point of retirement is that you save enough money so you won’t have to work after a certain age. But not everyone has the ability to save enough money for retirement, and those that do retire don’t always have enough to last them until they pass on. Add in rising healthcare costs, tax rates, an increased number of parents and grandparents cosigning on loans for college, and the paltry amount guaranteed by social security, and you have the formula for bankruptcy in retirement.