Legal Question in Bankruptcy in Illinois

Re: chapter 7

If you have no equity that can be recovered by the Trustee, and if you are not behind on your mortgage AND mortgage obligations, the mortgage company won't foreclose. If you are behind, and can afford the mortgage, but not other debt, like unsecured credit cards, then you can do a Chapter 13. You really should consult a bankruptcy attorney like me, in his office. Good Luck.

Re: chapter 7

A debtor is allowed to keep any exempt assets in a bankruptcy case. In Illinois, a debtor can protect $15,000 of equity in their home, after costs of sale and mortgage balance is subtracted from the fair market value. If the debtor wants to keep the home, they would sign a reaffirmation with the lender, and continue making the payments. Only if the debtor wishes to surrender the home, is the debt truly discharged in the bankruptcy, as the lien will remain on the home, even though the debt would be eliminated. Contact me with any further questions if you wish to file, we can review what assets can be protected for you.