Monthly Archives: December 2025
Benefits of Bankruptcy: Chapter 7
The biggest benefit of Chapter 7 bankruptcy is a fresh start. The financial storms of life, such as divorce, death in the family, and high medical bills, strike everyone from time to time. Most families live from hand to mouth. Therefore, even a temporary income disruption is usually devastating. A fresh start, which includes… Read More »
Reducing Debt Without Filing Bankruptcy
Usually, bankruptcy is hands-down the best way to reduce debt. Chapter 7 and Chapter 13 quickly reduce debt with a minimal long-term effect on a credit score. However, bankruptcy isn’t the best debt-reduction option in all cases. In many cases, reducing debt without filing for bankruptcy is entirely possible, and many people successfully regain… Read More »
Chapter 7 and Chapter 13: A Quick Comparison
Both forms of consumer bankruptcy offer distressed debtors a fresh start. As outlined below, Chapter 7 and Chapter 13 have many other things in common as well. However, some significant differences exist, mostly with regard to the type of debt addressed (secured or unsecured). A Chicago bankruptcy lawyer does much more than fill out… Read More »
Does Bankruptcy Wipe Out Back Taxes?
Yes, bankruptcy wipes out back taxes. Taxes are unsecured debts, like credit cards and medical bills. The taxpayer simply promises to pay these debts. The taxpayer doesn’t put up any security, like a house or car. However, under the Bankruptcy Code, back taxes are priority unsecured debts. So, they’re only dischargeable in certain situations…. Read More »
