What is a bankruptcy?

Bankruptcy is a court process designed to assist consumers and business eliminate debts or repay them under the protection of the federal bankruptcy court. When you file for a Chapter 7 or Chapter 13 bankruptcy, the bankruptcy judge enters a court order called an “automatic stay”. When an automatic stay goes into effect, creditors are prohibited from taking any action to collect the debts you owe unless the bankruptcy court lifts the stay and lets the creditor proceed with its collection activities.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

While there are actually six different types of bankruptcy listed in the U.S. Bankruptcy Code, the two chapters used most predominantly by consumers are Chapter 7, and Chapter 13:

Chapter 7, also called a "liquidation" or "fresh start" bankruptcy, allows you to have all of your eligible debts discharged completely. Certain of your assets could be lost, which is why you need an experienced bankruptcy attorney to help protect your assets. Chapter 7 is generally used to eliminate credit card debts, medical bills, personal loans, payday loans and other unsecured debts that cannot be repaid.

Chapter 13, also called a "wage earner's" bankruptcy, creates a debt repayment plan where your debts are consolidated into a monthly payment. This allows you to catch up on secured debts (e.g., mortgage, car loan) and pay a portion of your unsecured debts. After 36 to 60 months of making payments, your remaining debts will be discharged. Chapter 13 is generally used to stop foreclosures, repossessions and garnishments.

What types of debts can be discharged in Chapter 7 bankruptcy?

Chapter 7 bankruptcy will discharge most debt, such as:

• Bank and department store credit card bills
• Utility bills
• Doctor’s and hospital bills (i.e., medical bills)
• Personal loans
• Loan balances due on repossessed vehicles
• Loan balances due on foreclosure properties (i.e., deficiency judgments)

Can all debts be discharged in Chapter 7 bankruptcy?

Although a Chapter 7 bankruptcy will discharge most debt, certain debts cannot be discharged in bankruptcy and you will continue to owe them as if you never filed for bankruptcy. These debts include

• Most types of tax debts
• Domestic support obligations (e.g. child support and alimony)
• Most obligations to local, federal and state governmental entities, including parking tickets
• Debts obtained through fraud
• Debts incurred as a result of personal injury or death caused by operating a vehicle
• Student loans unless you can show repayment of the debt would be an undue burden
• Debts not listed in the bankruptcy petition

Where can I find information about employment discrimination and retaliation?

The United States Equal Employment Opportunity Commission (EEOC)

What federal and state agencies provide information about employment law?

Federal

The United States Equal Employment Opportunity Commission (EEOC)

State Agencies (for Illinois)

Illinois Department of Human Rights

Illinois Human Rights Commission

What is the difference between a will and a trust?

A Will is a formal legal document in which you specify the persons or entities you want to give your property after you die.

A Trust is a way of transferring your property to an artificial legal entity or "person" (the Trust) before your death. During your lifetime you still have use and/or control of your property.