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Kryshak Law Office LLC Bankruptcy Notice

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is the legal process in which most, if not all, unsecured debts are discharged or eliminated. A bankruptcy trustee will be assigned to your case. The bankruptcy trustee can liquidate (sell and convert to cash) any non-exempt assets and use the proceeds to pay toward the debt.  


Many people are misled by term liquidation. Many people who file Chapter 7 bankruptcy do not have any non-exempt assets and end of being able to keep all of their property and personal belongings.

Do I qualify to file Chapter 7 bankruptcy?

A person's eligibility to file Chapter 7 bankruptcy is determined under the Chapter 7 means test.  


The means test is a calculation based primarily on your income and expenses. The first part of the means test compares your income to the median income of a household of the same size as yours. The second part of the means test looks to see if you have any disposable income after subtracting allowable expenses from your income.

What happens to my mortgage and car loans?

As long as your mortgage and car payments are current, you should have no problem with a reaffirmation of the debt. Reaffirmation means that you continue making the monthly payments and you can keep the house and cars.

Kryshak Law Office offers low fixed rates and flexible payment plans.  

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What debts can I discharge in a Chapter 7 bankruptcy?

Most of your unsecured debts can be discharged through a Chapter 7 bankruptcy.  


Some of the common unsecured debts that can be discharged include:

• Credit cards

• Medical bills

• Utility bills

• Payday / check loans

• Personal loans

• Deficiencies from repossessions


It may also be possible to get rid of secured debt by filing for Chapter 7 bankruptcy. If you no longer wish to make your mortgage or car payments, or if you feel you can no longer afford these payments, you can choose to surrender your house or car and get rid of these debts as well.  


Even though most debt can be discharged through a Chapter 7 bankruptcy, there are certain types of debt that cannot be discharged. Some common examples of non-dischargeable debts include recent tax debt, child or spousal support, most student loans, and debt from car accidents where drugs or alcohol was involved.

Chapter 7 Bankruptcy is also known as Debt Elimination Bankruptcy

What if I am being sued or have a judgment against me?

Chapter 7 bankruptcy can stop a lawsuit against you and eliminate most judgments that you may have already received.


If you are currently facing a lawsuit against you, you should call to set up a consultation as soon as possible to avoid any problems and complications that may arise from the lawsuit.


If you are currently being sued and own real estate, you should act quickly to avoid getting a judgment against you and to prevent your creditors from placing a lien on your property. You should also act quickly to avoid wage garnishment if you are being sued or are facing a judgment.

What if my wages are being garnished?

All garnishments must immediately stop once you file for bankruptcy. Filing bankruptcy is one of the fastest ways to stop your wage garnishment. Furthermore, one you have filed Chapter 7 bankruptcy, you may be able to get back some of the wages that were garnished before your case was filed.

What if I am being harassed by creditors?

Generally, your creditors are free to contact you until your bankruptcy case is filed. The best way to stop creditor harassment is to have your case filed quickly. In addition, there may be some alternatives to minimize creditor harassment at home, or if you are receiving calls at work. These options can be discussed in greater detail at your initial consultation.

How will file Chapter 7 bankruptcy impact my credit?

One of the major concerns about filing for bankruptcy is the impact it will have on one's credit rating. The truth is that filing bankruptcy has an adverse impact on your credit rating.  


However, once your case is filed, it is possible to rebuild your credit rating much faster than you would expect. One of the best ways to improve your credit score is to reaffirm your mortgage or car loan. There are other ways to improve your credit score even if you do not have any secured debt to reaffirm. Many people are able to get financing very soon after bankruptcy.  


After as little as 1 to 2 years, many people are able to obtain favorable rates on a car loan. A couple of years after that, people should be able to obtain financing for a home.


In all reality, if you currently have a large amount of debt or if you are late or have

missed some payments to creditors, it is likely that you are just doing further damage to your credit score.  


Although filing bankruptcy is a personal decision, in many cases it is beneficial to get a fresh start by filing bankruptcy and starting to rebuild your credit rating.

What are the fees to file Chapter 7 bankruptcy?

The fees for filing Chapter 7 bankruptcy may vary depending on the complexity of your case. Bankruptcy law is very technical and thus the initial consultation is very important to provide accurate advice and assess the complexity of your specific case.  


Kryshak Law Office offers low fixed rates and flexible payment plans.

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