Chicago Bankruptcy Lawyer
The financial pressures of living in Chicago can be immense. When unexpected job loss, medical emergencies, or overwhelming credit card debt disrupt your life, the stress can feel insurmountable. If you are facing the possibility of foreclosure on your home, repossession of your vehicle, or garnishment of your wages, you have a powerful legal right to a fresh start. Bankruptcy is a federal law designed to give honest individuals a chance to reset their finances and rebuild their future. The Law Offices of Anthony R. Scifo provides expert and compassionate guidance to clients throughout Chicago, helping them navigate the path to debt relief.
Making the decision to explore bankruptcy is a courageous step toward regaining control. Our firm is dedicated to providing a non-judgmental and supportive environment where you can understand your options clearly. We will handle every aspect of your case, starting with the immediate protection of the “automatic stay,” which legally stops most creditor actions against you. To learn how we can help you achieve lasting financial freedom, call us for a free, confidential consultation at (847) 628-8311.
Immediate Protection from Creditors in Chicago
The moment you file your bankruptcy petition, the automatic stay goes into effect. This powerful federal injunction provides immediate and comprehensive relief by forcing your creditors to cease all collection activities. We can help you:
- End relentless phone calls and threatening letters through powerful action against creditor harassment.
- Immediately stop wage garnishment so you can take home your full paycheck.
- Halt foreclosure proceedings on your Cook County property with strategic foreclosure defense.
- Prevent the repossession of your vehicle, which is essential for commuting in the city and suburbs.
Choosing the Right Path: Chapter 7 vs. Chapter 13
Our attorneys will analyze your income, debts, and assets to determine which form of bankruptcy is best suited to achieve your goals.
Chapter 7 Bankruptcy: A Fresh Start
Often called a “liquidation” bankruptcy, Chapter 7 is the fastest and most common form of bankruptcy. It is designed to completely eliminate (discharge) most unsecured debts like credit cards, medical bills, and personal loans. To be eligible, you must pass the Illinois means test. Thanks to generous legal exemptions, the vast majority of our clients keep all of their assets, including their homes and cars.
Chapter 13 Bankruptcy: A Powerful Reorganization Plan
A Chapter 13 bankruptcy is a reorganization plan that allows you to consolidate your debts into a manageable payment plan over three to five years. It is an ideal tool for Chicago residents who want to catch up on missed mortgage payments to save their home, pay off non-dischargeable tax debt, or for those whose income is too high to qualify for Chapter 7. Any remaining unsecured debt is typically discharged at the end of the plan.
The Bankruptcy Process for Chicago Residents
Bankruptcy cases for residents of Chicago and Cook County are filed in the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, which is located at the Everett McKinley Dirksen U.S. Courthouse in downtown Chicago. Our attorneys are intimately familiar with the procedures and trustees of this specific court.
- Consultation and Filing: We will prepare and file your comprehensive petition and all related documents with the court.
- Meeting of Creditors: About a month after filing, you will attend a brief, mandatory hearing called the “341 Meeting of Creditors” where a court-appointed trustee will ask basic questions about your petition. We will be by your side throughout this meeting.
- Discharge: After completing all requirements, the court issues a discharge order, which officially eliminates your qualifying debts and legally prohibits creditors from ever trying to collect on them again.
For official court rules and information, you can visit the U.S. Bankruptcy Court, Northern District of Illinois website.
Why Choose Scifo Law for Bankruptcy Representation in Chicago?
- Expert Navigators of the Federal System: We have extensive experience representing clients at the Dirksen Federal Building. We know the system, the trustees, and the local rules, ensuring your case proceeds smoothly.
- Compassionate & Non-Judgmental Service: We understand that financial hardship can happen to anyone. Our firm is a safe space where you will be treated with dignity and respect as we help you find a solution.
- A Commitment to Your Financial Future: Our goal is not just to get you through bankruptcy, but to set you on a path toward long-term financial health and stability.
We are proud to provide top-tier debt relief services to clients in every neighborhood. Learn more about our commitment to the clients we serve in Chicago.
Frequently Asked Questions about Filing for Bankruptcy in Chicago
Will filing for bankruptcy affect my ability to rent an apartment in Chicago?
While some landlords may check credit, many Chicagoans find it easier to get an apartment after bankruptcy because their debt-to-income ratio has significantly improved. A bankruptcy discharge shows you no longer have burdensome old debts, which can make you a more reliable tenant.
Can I eliminate all my debts, like student loans or parking tickets?
Bankruptcy is very effective at eliminating unsecured debts like credit cards and medical bills. However, certain “priority” debts are typically not dischargeable, including most student loans, recent income taxes, child support, and government fines like Chicago parking tickets.
Do I have to go to court at the Dirksen Building?
Most bankruptcy filers never see the inside of a courtroom. The required “Meeting of Creditors” is a less formal meeting that takes place in a conference room at or near the Dirksen Building, and in many cases, can be held remotely. Your attorney will be with you the entire time.
How soon can I start rebuilding my credit?
You can start rebuilding your credit almost immediately after your debts are discharged. By using credit responsibly (such as with a secured credit card) and making all payments on time, many people are able to obtain car loans and even mortgages within a few years of filing.