Why Is Chapter 7 Bankruptcy Right For Me?

Chapter 7 bankruptcy can provide a fast discharge from debt, delay foreclosure hearings and eviction, keep your utilities connected, and prevent wage garnishment.

Although it can provide valuable advantages in the right cases, it's not always the best choice. Consulting a lawyer can ensure that you choose the right path forward.

Are you asking yourself, "Why is Chapter 7 bankruptcy right for me?" Chicago Bankruptcy Clinic serving Aurora and Oak Brook, IL, has the answers you need. 

Reasons Why Chapter 7 Might Make Sense For You

Attorney Alex Ranjha and his team have helped many clients choose the best means of coming to terms with insurmountable debt. Our lawyer leads an office that is prepared to help you make the right steps forward based on your unique circumstances. Both individuals and businesses can file Chapter 7 bankruptcy with guidance at our Oak Brook or Chicago office. In general, these are the factors your attorney will consider if you are unsure if Chapter 7 is right for you:
Bankruptcy paperwork

You earn below the median income in Illinois.

If your income is below the median income in Illinois, you may qualify for Chapter 7 under Illinois bankruptcy law.

Couple calculating bills

You earn above the median, but don't have the means to pay unsecured debts.

Those who earn above the median in Illinois may still qualify if they can pass a means test. Put simply, a means test demonstrates they do not have the means to pay their unsecured debts. These are debts that aren't attached to property as collateral. They include credit card debt, medical bills, personal loans, and overdue utility bills. 

Calculating bills

Prior bankruptcy filings don't affect your eligibility.

If you have debts that were discharged under Chapter 7 bankruptcy in the last eight years, or under Chapter 13 in the last six years, you are not eligible to file for Chapter 7 bankruptcy. If you defrauded or attempted to defraud the bankruptcy court or your creditors at any time in the past, you are also ineligible to file Chapter 7 bankruptcy. A lawyer can be instrumental in guiding the way forward if any of these legal factors affect you.

Money and model of a home

You have few assets.

In Chapter 7 bankruptcy, property including $4,000 in car equity, $15,000 in home equity, essential personal property, and retirement plans are exempt from liquidation. If your debts are greater than the value of your assets, Chapter 7 can help you avoid liquidation of the assets you need most. Chapter 7 can also provide you with the benefit of discharged debts such as medical bills without the burden of a years-long repayment plan. An attorney can help you understand what could be liquidated and what is protected.

Woman undergoing credit counseling

You are willing to undergo credit counseling.

You must undergo credit counseling by a state-approved agency before you can file for Chapter 7 bankruptcy in Illinois. Once the course is complete, you can petition the bankruptcy court. Our attorney can file the petition on your behalf and advocate for you before the court.

341 meeting

You are willing to attend a 341 meeting,

During a 341 meeting, the trustee (the person appointed by the bankruptcy court to liquidate your nonexempt assets to repay your creditors) will verify the accuracy of the information provided in your petition. This will involve asking you questions about your petition and other details. Creditors themselves typically only attend this meeting if they believe you are hiding assets or income.

Request Your Free Consultation With a Bankruptcy Attorney

Our law practice serving Oak Brook, Aurora, and Greater Chicago can help you decide whether filing for Chapter 7, Chapter 13, or Chapter 11 of the bankruptcy code is the best strategy for you. When creditors are constantly calling and there seems to be no hope, our bankruptcy attorney can help you use the law to your advantage. 

Our practice understands that every bankruptcy case is unique, and we are prepared to give you the guidance you need to present your bankruptcy case to the court in a way that benefits you the most. Your search for a lawyer who can put bankruptcy law to work for you ends here. Send us a message or call to request your free consultation with an attorney:

Couple on laptop discussing filing for bankruptcy

"They will bring you great peace of mind." 5-Star Reviews


Michael Kilroy

Oak Brook, IL


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I referred Chicago Bankruptcy Clinic to friends and they could not be more complementary of their services. If you need help, CBC is the team to see.

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Heather Parris

Oak Brook, IL


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Bankruptcy is such a stressful time, so you want to have someone fighting for you in your corner. This company really helped my neighbor in their time of need. They will bring you great peace of mind!

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Chapter 7 vs. Chapter 13

Chapter 13 bankruptcy is often called "reorganization bankruptcy." Chapter 13 is for people with a steady income who agree to pay off loans with a court-approved repayment plan over a three- to five-year period. Our attorney serving Oak Brook and Greater Chicago will help you determine if Chapter 13 bankruptcy may be a better option than Chapter 7 based on several factors, including:

Your Income

If you earn more than our state's median income and the means test determines that you have expendable income, the bankruptcy code may dictate that Chapter 13 bankruptcy is a legal option, but Chapter 7 is not. It pays to get a lawyer involved as early as possible to explore your legal options for escaping the scrutiny of creditors. 

The Type of Debt You Carry

Certain debts, such as past-due child support payments, cannot be discharged. Our lawyer and his team serving Oak Brook, Aurora, and Greater Chicago have helped clients navigate all kinds of bankruptcy filings and can help you take the most advantageous route out of debt allowable under the law.

The Amount of Debt You Carry

Thanks to changes in the law that took place in 2022, individuals and businesses can file for Chapter 13 if their combined secured and unsecured debts are under $2,750,000 on the date of their bankruptcy filing. Our lawyer and his team serving Oak Brook and surrounding areas will help you explore your legal options and determine if this is a prudent way for you to repay your creditors. We look forward to helping you use the law to your advantage.

What Is Chapter 11?

Chapter 11 is mostly used by businesses that are making money but cannot afford their loan payments. It differs from Chapter 13 because it can apply to any amount of debt, and it can require liquidating property to repay debts. Our attorney and his team serving Oak Brook and Greater Chicago can help determine if this option serves your best interests, or if you are a better candidate for Chapter 7 or Chapter 13 bankruptcy. Your search for a firm that understands the often complicated content of the laws pertaining to bankruptcy ends at Chicago Bankruptcy Clinic.

Why Clients In Need Turn to Us


Lawrence Moreno

Oak Brook, IL


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They helped back in 2017 with my bankruptcy and it was smooth, a question came up just recently and they were more then willing to help out no questions asked!!

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Damiano Manzella

Oak Brook, IL


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Very respectable and well spoken professionals

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attorney Alex Ranjha

Chicago Bankruptcy Clinic

At Chicago Bankruptcy Clinic, our bankruptcy attorneys and paralegals work closely with clients to assess their financial situation and explore debt relief options, including filing for Chapter 7 and Chapter 13 bankruptcy. Our team is proud to be affiliated with the following organizations:

  • Illinois State Bar Association
  • Chicago Bar Association

We offer free consultations and flexible payment plans. To learn more about foreclosure and bankruptcy, contact our office online or call (630) 537-0737 today.

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