Business owners in Illinois who wish to seek debt-relief may consider chapter 7 as an option. It is available to consumers who do not own a business as well. The only significant drawback of this bankruptcy chapter is the fact that the court controls all aspects, including the selection process for liquidation. The judge determines which properties or assets are more likely to produce adequate proceeds to settle his or her debts. Beyond this disadvantage, it is considered the most rapid form of bankruptcy. To file a claim in court, the consumer or business owner should hire a chapter 7 bankruptcy attorney in Chicago.
How Does it Work?
The individual provides a list of their properties and presents it to their attorney. He or she reviews this list and conducts market research to establish a potential sales price for these items. The appraised values for these properties are taken into consideration when final selections are made. The attorney advises the individual in regard to which properties are exempt in this chapter and, which are more than likely to be placed on the open market.
Any company that files chapter 7 bankruptcy is required by Illinois bankruptcy laws to cease all operations. The judge establishes the final selections for liquidation based on Illinois laws that apply to the property type. In most cases, the primary residence and personal properties that are separate from a business are not included in liquidation as they are protected under these laws. However, if the business owner is a self-proprietor, personal and business properties are commingled. When this is the case, the equity established determines whether or not the primary residence is sold.
A trustee is assigned to the case by the judge. He or she monitors the sale of all property selected for liquidation. He or she submits regular reports to the judge to establish the progression of the case. As each debt is settled, the business owner or individual can request that the creditor remove their listing from their credit report. At the beginning of this process, a chapter 7 bankruptcy attorney in Chicago must ensure that the claimant attends a credit-counseling program. He or she will learn new ways to manage their debts and increase their credit score overall. Browse http://www.lakelaw.com/ for more information.