The Ottenheimer Law Group recognizes the practical, financial, and emotional struggles that come with seemingly insurmountable debt. With a focus on positioning our clients for post-bankruptcy success, we provide experienced representation for individuals and businesses throughout Chicagoland who are seeking to regroup and rebuild.

Chapter 7, often called straight bankruptcy, is the most frequently taken avenue for bankruptcy protection because those who qualify will ultimately be relieved from paying many of the common unsecured consumer or household debts that contributed to their current situation. Obligations that are typically “discharged” in Chapter 7 proceedings include:

Not all debts are discharged in Chapter 7 proceedings. Student loans, child support payments, and certain tax debts will remain the debtor’s responsibility after their case ends. But Chapter 7 does provide debtors with the peace of mind that comes from knowing that, in most cases, they will be able to keep their home, their car, and other exempt assets if they commit to paying these obligations going forward. All non-exempt assets, however, are put in the hands of a court-appointed trustee who will use those assets to pay down the debts that will be discharged at the conclusion of the proceedings.

Another advantage of meeting with a Chapter 7 bankruptcy attorney is that they can put a stop to the stress, anxiety, and harassment caused by debt collectors, lawsuits, foreclosures, or evictions if Chapter 7 is a suitable and available option.

When a debtor files a Chapter 7 petition, an “automatic stay” immediately goes into effect. The automatic stay applies to a broad range of actions against a debtor. It is, in effect, a “time-out” that can allow you, your attorney, the court, and creditors to develop the plans to move forward.

Under Section 362 of the Bankruptcy Code, most creditors are forbidden at that point from doing anything that constitutes an attempt to collect a debt. This includes phone calls, letters, foreclosures, repossessions and seizures of property, set-offs of funds, perfection of liens, garnishments, and civil collection lawsuits.

Just as not all debts can be discharged in a Chapter 7 bankruptcy, the automatic stay does not bar all creditors from continuing in their efforts to collect amounts owed from the debtor.

In addition to assisting individuals, Ottenheimer Law Group’s Chapter 7 bankruptcy lawyers also represent businesses in these proceedings, which can be well-suited for companies that are going out of business, have substantial debt, and wish to liquidate their assets to pay down those debts.

Sole proprietorships, partnerships, corporations, and limited liability companies can all avail themselves of Chapter 7. However, the decision to proceed can be complicated, especially for corporations and partnerships. Business owners, partners, and shareholders may not agree on whether filing is the best course of action given their personal interests, such as whether they have personally guaranteed any of the company’s obligations.

It is critical that you work with an experienced bankruptcy attorney who can give you a holistic view of your options and evaluate the impact that a Chapter 7 bankruptcy would have not only on your business but your personal interests as well.