Common Chapter 7 Bankruptcy Questions, Pt. 2

If you’re considering filing for Chapter 7 bankruptcy, you may have a variety of questions about the process and how it will affect you and your finances. Here are some more common questions and concerns about Chapter 7:     – What are secured creditors? – These are creditors which have valid liens or mortgages against your property, such as a car or home, which is called “secured property.” The secured creditor’s claim for this property is a “secured claim.”     – What are unsecured creditors? – Unsecured creditors do not have valid liens or mortgages on your property, but may file claims with the court regarding non-exempt assets. After the trustee has converted your non-exempt property to cash, funds in the form of dividends may be distributed to unsecured creditors based on the priorities of the Bankruptcy Code.     – What debts CAN’T be discharged in Chapter 7? – Non-dischargeable debts in Chapter 7 include debts for student loans, alimony/child support, fraud, embezzlement, larceny, and death/personal injury due to driving while intoxicated. Visit illinoisbankruptcy.com to learn more.     – What is a trustee and what are my responsibilities to him/her? – The trustee is a court official who will collect your non-exempt property and pay the creditors’ claims and estate expenses. Trustees are responsible for ensuring that you perform your required duties for your case, and not cooperating with the trustee may result in a case-dismissal and denial of your discharge.     – What happens to property that is turned over to the trustee? – This property is usually converted into cash to pay the trustee’s fees and expenses as well as unsecured creditors’ claims.If you are struggling financially and considering filing for Chapter 7 bankruptcy, you’re not alone. Contact an experienced bankruptcy attorney today for a free consultation.