CAN YOU USE YOUR CREDIT CARD RIGHT BEFORE FILING BANKRUPTCY?

The answer is dependent on when the credit cards were last used and for what purpose. Generally, any use of a credit card for luxury goods over $500 and debts owed to any one creditor incurred within 90 days of filing will not be discharged. Also, any cash advances made within 70 days before filing or debt incurred without any intention to repay will also not be discharged. Typically, if minimum payments are made to the creditor for the last six months prior to filing, a debtor should have no problem having such a debt discharged as long as no debt was incurred under false pretenses or fraud.

WCZ
http://www.westmontattorneys.com

WHAT TYPE OF PROPERTY IS EXEMPT FROM A CHAPTER 7 BANKRUPTCY?

In Illinois, the state has a statutory list of property that is exempt from bankruptcy, meaning it cannot be touched or seized by the trustee. For example, up to $15,000 worth of equity in your house and $2,400 worth of equity in your car is exempt under Illinois law. Also, most retirement savings and unemployment compensation is exempt also. There are also many other categories of exemptions allowed by the state, in addition to everyone's $4,000 "wild-card" exemption. The "wild-card" exemption can be used for any assets or accounts the debtor holds, and those assets will be protected from the bankruptcy proceedings up to $4,000 worth of value. There are several different ways debtors can protect their assets from creditors, so contact one of our bankruptcy lawyers today in order to learn more.

WCZ
http://www.westmontattorneys.com