Black and white logo of a fountain pen inside a wreath, left side black, right side white.

Chapter 7 Bankruptcy:

A Fresh Start for Overwhelming Debt

For many people facing unmanageable credit cards, medical bills, or personal loans, Chapter 7 bankruptcy can offer real relief and a chance to rebuild. Jackson Abdalla Law Group helps clients in Elgin and the surrounding suburbs evaluate whether Chapter 7 is right for them and guides them through every step of the process. Attorney Julia Jackson provides clear, supportive advice so you understand what to expect before you file.

Who Qualifies for Chapter 7?

(The Means Test):

Eligibility for Chapter 7 is determined in part by the "means test," which compares your income to the median income for a household of your size in Illinois and examines your allowable expenses.



In general, you may qualify if:

Black checkmark on white background.

Your household income is below the Illinois median, or

Black checkmark on white background.

Your disposable income after allowed expenses is too low to repay significant debt

Julia analyzes your finances and helps determine whether Chapter 7 is an option-or if another path, such as Chapter 13, would better serve your interests.

What Debts Can Chapter 7 Discharge?

Chapter 7 can eliminate many unsecured debts, including:

  • CREDIT CARD BALANCES

  • MEDICAL BILLS

  • PERSONAL AND PAYDAY LOANS

  • SOME OLDER UTILITY BILLS

Certain debts generally cannot be discharged, such as:

  • MOST STUDENT LOANS

  • RECENT TAX OBLIGATIONS

  • CHILD SUPPORT AND ALIMONY

Julia reviews your specific debts and explains what Chapter 7 can and cannot accomplish in your case.

Will I Lose My House or Car?

Many clients worry they will lose everything if they file Chapter 7. In reality, Illinois exemption laws protect certain property, often allowing filers to keep:

  • A PORTION OF EQUITY IN A HOME

  • EQUITY IN A VEHICLE UP TO CERTAIN LIMITS

  • PERSONAL PROPERTY SUCH AS CLOTHING, HOUSEHOLD ITEMS, AND SOME CASH

  • QUALIFIED RETIREMENT ACCOUNTS

Most Chapter 7 clients keep essential assets. Julia helps you maximize available exemptions and minimize the risk of losing important property.

The Chapter 7 Process and Timeline:

While every case is unique, a typical Chapter 7 follows these steps:

Initial consultation and financial review

Required credit counseling course

Preparation and filing of your bankruptcy petition and schedules

Automatic stay begins, stopping most collection efforts

341 meeting of creditors with the bankruptcy trustee

Review of any non-exempt assets by the trustee

Entry of discharge order eliminating qualifying debts

Why Work with a Chapter 7 Bankruptcy Lawyer:

Chapter 7 involves detailed forms, strict deadlines, and serious legal consequences. An attorney:

  • ENSURES YOUR PAPERWORK IS COMPLETE AND ACCURATE

  • HELPS PROTECT ASSETS THROUGH PROPER USE OF EXEMPTIONS

  • ADVISES YOU ON WHAT TO EXPECT AT EACH STEP

  • REPRESENTS YOU IF ISSUES ARISE WITH THE TRUSTEE OR CREDITORS

  • HELPS YOU AVOID MISTAKES THAT COULD JEOPARDIZE YOUR DISCHARGE

Julia's experience guiding clients in Kane County and neighboring areas through Chapter 7 gives you a knowledgeable ally throughout the process.

Life After Chapter 7: Rebuilding:

A successful Chapter 7 discharge can be the beginning of a new financial chapter. With unsecured debts eliminated, many clients are able to:

  • REBUILD SAVINGS

  • CREATE A REALISTIC BUDGET

  • GRADUALLY IMPROVE THEIR CREDIT OVER TIME

Julia can discuss practical next steps for rebuilding your financial life once the case is complete.

Learn more about debt relief options:

Black telephone icon with sound waves.

Wondering if you qualify for Chapter 7 and what it would mean for your future?

Get answers tailored to your situation.