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Chapter 7 Bankruptcy Attorney, Oak Brook
Whether you qualify, what you keep, what it stops and how long it takes — explained plainly, for people in Oak Brook, Berwyn and across Chicagoland. Free consultation.
Chapter 7 is the chapter most people mean when they say “bankruptcy”. The Bankruptcy Code calls it liquidation: qualifying debts are discharged, and in exchange a trustee may sell property that is not protected by an exemption. In practice, for most of the households we file for, the trustee sells nothing at all — but whether that is true of you is a question to answer before filing.
Do you qualify? The means test
If your current monthly income is below the Illinois median for your household size, you generally qualify. If it is above, the Code applies a means test to decide whether your filing would be presumptively abusive. The test is not just a look at gross pay — it takes account of household size and allowed expenses, and people above the median do still qualify. If Chapter 7 turns out to be closed to you, Chapter 13 usually is not. Joe walks through it in the Chapter 7 means test in Illinois.
What you keep
Exemptions decide what the trustee cannot reach — typically equity in a home, a vehicle, household goods, tools of a trade and retirement savings. Illinois uses its own exemption list rather than the federal one, and the figures are set by statute and change, so the only answer worth having is one worked out against your real equity and loan balances. Start with the main Illinois exemptions, and the question everyone asks first: can I keep my car?
Equity is what matters, not the sticker price. A car you still owe most of the money on is often not at risk at all.
What it stops
Filing automatically stays — stops — most collection action against you and your property: the calls, the letters, and in most cases a wage garnishment or a pending repossession. If your problem is a mortgage you have fallen behind on rather than unsecured debt, Chapter 7 is usually the wrong tool and foreclosure defense or Chapter 13 is the right one.
What it does not erase
A discharge does not cover everything. Certain tax claims, debts you leave off your schedules, child support and alimony, debts for willful and malicious injury, government fines and penalties, and most government-funded or guaranteed student loans all commonly survive. Secured creditors may also keep the right to take back collateral after the discharge — so the debt can be gone while the lender's claim on the car is not.
How a case runs
- Credit counseling from an approved agency within the 180 days before filing — required, with no workaround.
- Petition and schedules. A complete list of what you own and owe. Accuracy here is what protects the discharge.
- Meeting of creditors, 21 to 40 days after filing. Short, and we prepare you for it.
- A financial-management course before discharge. Skipping it can cost the discharge.
- Discharge, generally 60 to 90 days after the date first set for the meeting of creditors, in a case where nobody objects.
The official summary is the US Courts' Chapter 7 Bankruptcy Basics. For what it feels like in practice, see filing in Illinois, what to expect.
Is Chapter 7 right for you?
It is a good fit when the debt is mostly unsecured — credit cards, medical bills, personal loans, old debt-buyer judgments — and you are not trying to save a property you have fallen behind on. It is the wrong fit when the real problem is arrears on a home or car you want to keep, or when almost all of your debt is the kind that survives a discharge. We will tell you which situation you are in at the consultation, including if the answer is that you should not file at all. See bankruptcy versus debt settlement and when a bankruptcy attorney in Oak Brook can help.
Cost and next step
There is a court filing fee and our fee, quoted before work starts. The consultation is free, payment plans are available and we accept all major credit cards. Bring recent pay stubs, any court papers, creditor letters and your loan statements — and if a sale or hearing date is already set, tell us when you call. More on fees: payment plans explained.
Nothing on this page is legal advice about your situation, and reading it does not create an attorney–client relationship. Procedure described here was checked against the US Courts' Bankruptcy Basics in September 2026.
Frequently asked
Questions we hear most.
How long does a Chapter 7 case take?
In a straightforward case with no objections, the discharge generally comes 60 to 90 days after the date first set for the meeting of creditors — and that meeting is held 21 to 40 days after filing. So the common pattern is a few months, not years. Cases with disputes, business assets or objections take longer.
Will I have to go to court?
You attend a meeting of creditors with the trustee, which is not a courtroom hearing and is usually brief. Most people are never in front of a judge at all. We go through the questions with you beforehand.
Can I file if I am above the Illinois median income?
Often yes. Above-median income triggers the means test rather than an automatic bar, and the test allows for household size and actual expenses. If it does rule out Chapter 7, Chapter 13 is normally still available. See the means test explained.
What happens to my car loan or mortgage?
Those are secured debts, and a discharge deals with your personal liability rather than the lender's claim on the property itself — secured creditors may keep the right to take back collateral. If you are current and the equity is exempt, people commonly keep the vehicle and carry on paying. If you are behind on a home, Chapter 13 is usually the better route. See Chapter 13.
Will bankruptcy wipe out my tax debt or student loans?
Usually not. Most government-funded or guaranteed student loans and many tax claims survive a discharge, although some older tax debt can be treated differently depending on the facts. If tax debt is the main problem, look at IRS debt settlement as well.
Do I have to list every debt?
Yes — and it is in your interest to. A debt you leave off your schedules can survive the discharge, which is one of the most avoidable mistakes in the whole process. List everything, including debts owed to family and debts you dispute.
Here for you when you need us most.
Free consultation. Payment plans available. All major credit cards accepted.