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QUESTION: We are in Illinois filing chapter 7 . We make 19000a year and have approx 10000 in debt. I wanted to know if they can take our house

ANSWER: If all you have is $10,000 in debts I'm not sure bankruptcy is a good idea.  Please advise - are these all credit cards?  What types of debts are they? I'll be glad to answer with a bit more info.

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QUESTION: Yes it is all credit card debt we are in good standing but only able to pay the minimum. We consolidated them there a credit counseling agency and it lowered the payments o?n two but not all

OK -- here's a non-bankruptcy option.  First to answer your homestead question, the exemption in Ill is $30,000 last time I checked.

That said, with $10k of credit card debt, I would hold off filing bankruptcy for right now.

Instead, I would advise you to quit paying all of the cc's -- this will mess up your credit but so will bankruptcy.  What happens is you'll get a series of demands, starting out "nice" and getting progressively worse -- threatening to take you to "collections" for example;  "we're considering legal action against you" that sort of thing.  Most of the time they just charge the account off after 6 months & sell to a debt buyer who will start with the demands again, and in all this it's "let's make a deal" mode where they'll offer to accept something less (quite a bit less) than 100% of the debt, lump sum or payments sometimes.

That's what I'd do.  It's doubtful you'll get sued, but if you do, at that point revisit the bankruptcy option.

I would not file bk on 10k of credit card debt only.  

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Consumer bankruptcy questions invited. I've been filing Chapter 7, 11 and 13 cases since 1985 in Calif and Arizona. I do NOT do homework questions. Let me know what state you're located in when you write. My bankruptcy practice is limited to California and Arizona but inquiries from other states are welcome. Your local jurisdiction determines exemptions. Find more background information at our website, Individual Chapter 11 and small business chapter 11 questions invited. We can also advise on the creditor's side if for example you have a fraud case, money judgment etc against someone who has filed (or is threatening) bankruptcy. We have filed and defended numerous adversary complaints in bankruptcy court and opposed trustees' demands for turnover of assets from time to time.


My partners and I have filed over 5000 consumer and small business cases to date in California and Arizona.

I've been a member of the California bar since 1984 and Arizona since 2004; also a member of the National Association of Consumer Bankruptcy Attorneys, Bankruptcy section of the Arizona State Bar, Tucson Association of Consumer Bankruptcy Attorneys, Arizona Consumer Bankruptcy Counsel and American Hellenic Educational and Progressive Association (AHEPA).

I've written a booklet on land trusts for real estate owners, players and dealers, and co-authored a special edition of "Stop Sitting on Your Assets". I was a writer of a monthly law review article relating to California real estate issues and pending and recently enacted legislation.

Attorney at law, experienced in trial procedures, adversary complaints filed and defended and numerous claims objection proceedings as well as filing cases for consumer and small business debtors.

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