While Chapter 13 bankruptcy is an opportunity that is made widely available to most American adults who are struggling with debt, the option of filing for Chapter 7 bankruptcy is reserved for far fewer potential filers. Because qualifying unsecured debts can be discharged via a Chapter 7 filing without a requirement to pay back one’s creditors, the government reserves this opportunity for low-wage earners. If a debt-laden individual meets the means test eligibility criteria for Chapter 7 bankruptcy, they may find that this debt relief option has the potential to free them from significant financial burdens.

Primary Benefits 

Once a Chapter 7 filing is received by the courts, an automatic stay is put into effect immediately. As a result of this legal protection, most creditors are prohibited from demanding repayment or pursuing debt-related legal action while a filer’s case remains unresolved.

After a Chapter 7 case has been navigated successfully, a filer’s eligible unsecured debt is discharged by the court. This means that a filer’s credit card balances, medical bills, personal loans, and other qualifying accounts will never again be that filer’s responsibility to repay.

 Bankruptcy is an essential financial protection that allows eligible individuals to get out from under the thumb of crushing, unmanageable debt. While declaring bankruptcy does have a significant effect on your credit score, it can also make a world of difference in your quality of life and allow you to start fresh. However, many people who file for Chapter 7 bankruptcy may be surprised to learn that a bankruptcy court could decide not to discharge a case, even after the debtor meets with the trustee and her creditors. To learn more about why a Chapter 7 bankruptcy might not be discharged, read on. 

Reasons a Chapter 7 Bankruptcy May Be Denied

When someone files for bankruptcy, she must provide the bankruptcy court with a full and honest accounting of her financial situation. This includes the debtor’s creditors and the amount and nature of each debt, the debtor’s income and its source, the debtor’s property, and the debtor and her family's living expenses. 

A crucial part of the bankruptcy process is the meeting of creditors. During the meeting, the trustee assigned to a case will ask questions of the debtor to probe the accuracy of the debtor’s statements and her understanding of the bankruptcy process. The debtor’s creditors will then have an opportunity to speak to the debtor and the trustee. 

 Child support is often a high-conflict area for divorced or separated parents. When the parent who is required to make child support payments cannot or will not pay, the parent receiving child support is usually left in a troubling financial position as he or she struggles to support a child on his or her own. In response, some parents threaten to or actually withhold parenting time from the parent who is behind in child support payments. However, this is illegal itself and can often backfire as a child support recovery strategy. Instead of taking matters into your own hands, work with an Illinois child support and child custody attorney who can help you explore your options and take legal action. 

What Are My Options for Recovering Child Support? 

Parents who need help getting the child support they are owed have a couple of options. The first is to work through the Illinois Department of Healthcare and Family Services (HFS), which is the governmental organization responsible for tracking down parents who do not pay child support and enforcing increasingly punitive sanctions on them until the support is paid. Unfortunately, HFS is often slow, very busy, and can be an ineffective way to get support in a timely manner. 

When debt has become an unmanageable burden, it is important to be proactive in seeking a solution. All too often, individuals think that if they work harder or spend a little less that unmanageable debt will suddenly become manageable. Unfortunately, due to influences like interest and unexpected life events, it is rare that simply “digging a little deeper” solves debt that has spiraled out of control. This is one of the primary reasons why the U.S. Bankruptcy Code exists. The opportunity to file for bankruptcy serves as an acknowledgment that overwhelming debt can be resolved with a little help along the way.

If you are thinking about filing for personal bankruptcy, you have two primary options to choose from. Chapter 7 bankruptcy is available to low-income filers. Chapter 13 bankruptcy is better suited for those who can make manageable monthly debt payments on their outstanding balances. Which option is right for you? That is an excellent question.

Picking and Choosing

If you qualify for Chapter 7 bankruptcy relief, this may be your best option because you can obtain a discharge of your eligible unsecured debts without first having to pay your creditors anything.

The time leading up to a wedding is one of great joy and excitement. While the planning can be stressful and overwhelming, both spouses usually look forward to what they anticipate will be one of the best days of their lives. 

In the milieu of new love, it can be difficult to know whether to bring up the subject of a prenuptial agreement. After all, it hardly feels romantic to discuss the end of a marriage before it has even begun. However, the time before a marriage is not only the ideal legal time to sign a prenuptial agreement - it is also the best time to fairly negotiate an agreement that has the potential to offer essential protection to both spouses if they do eventually get divorced. Here are some factors to consider as you try to decide whether a prenuptial agreement is right for you. 

When Should a Couple Sign a Prenup? 

While pop culture gives many people the impression that only the rich and famous use prenuptial agreements, this is far from the truth. Even if both spouses are going into a marriage without owning any personal assets, it can be valuable to agree to avoid conflict around money if you get divorced by creating an agreement about spousal support, debt, and more.