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Chapter 7 Bankruptcy

Chapter 7 bankruptcy also called "straight bankruptcy" or "liquidation bankruptcy" is the simplest and easiest form of the bankruptcy proceeding, and the best choice to eliminate your debt.

A person who files a bankruptcy case is called a debtor, who seeks financial relief under chapter 7 of the bankruptcy code. Chapter 7 can discharge any unsecured debt, credit card debt, medical bills, past due rent, past due utility bills, and more. Approximately 90 days after you file your Chapter 7 Bankruptcy, you are granted a discharge which means that you are no longer liable for the debt.

At The Law Office of Daniel Podkowa, we are committed to helping you lift the burden of financial hardship, and get out of debt with Chapter 7 Bankruptcy in Chicago, and the surrounding areas.


In order to file under chapter 7 of the bankruptcy code, a consumer must first pass the means test, and it is a document that must be completed prior to filing for bankruptcy. This test, which was added to the bankruptcy code in 2005, calculates whether you are able to afford, or have the "means" to pay your debts. The means test annualizes your income for the past six months and compares it with the median income for your place of residence. If the debtor's income is less than or equal to the state median income, the debtor "passes" the means test and may file chapter 7 bankruptcy. If you fail to pass the means test, you can only file chapter 7 bankruptcy under very specialized exceptions. We urge you to seek legal advice, by contacting our bankruptcy law firm today. One can choose the kind of bankruptcy that best meets your needs.

Experienced Park Ridge bankruptcy attorney Daniel Podkowa will determine, whether you meet the certain qualification to file for this certain kind of bankruptcy.


As soon as you file for chapter 7 bankruptcy, the power of the "automatic stay" goes into effect. This means that your creditors must immediately stop all collection efforts. Your creditors are notified that you have filed bankruptcy. When they've been notified, they must stop harassing you, calling you, writing to you, or taking any actions to get money from you. The automatic stay prohibits the creditors from pursuing judgments, wage garnishments, foreclosure proceeding, or repossessions.


One of the primary purposes of filing a chapter 7 bankruptcy is discharge. Once the discharge order is issued, you no longer owe your unsecured debts, and you can start working to rebuild your credit. Your creditors no longer have any legal right to seek payment. Some debts, however, are not released by a chapter 7 discharge, and some persons are not eligible for a chapter 7 discharge.

Contact us today

If you have questions about chapter 7 bankruptcy, or which debts will be affected by a bankruptcy discharge, it is important to seek the advice and counsel of an experienced bankruptcy lawyer at the bankruptcy law office of Daniel Podkowa, who will guide you through the entire process, and ensure that it is as painless as possible.

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