Disabilities and Chapter 7

There is a variety of reasons why people file for Chapter 7 bankruptcy to seek debt relief, including medical emergencies, unexpected job loss, and divorce, but another unfortunately-common reason people file for Chapter 7 is disability.

Many disability injuries which lead struggling clients to file for bankruptcy resulted from serious and unexpected accidents, such as auto accidents, leaving them with ongoing medical expenses and less time and capacity to keep up with their personal and financial obligations. Some disabilities can temporarily or permanently prevent you from working the same job you had before the accident, resulting in even greater financial strain as you adjust to living with your disability.

In such difficult times for accident-victims and their loved ones, dealing with creditors and debt-collectors should be the last thing on their minds, and through Chapter 7 bankruptcy, many have successfully put a stop to the harassment and eliminated significant portions of their debt with the help of an experienced bankruptcy attorney. Furthermore, disability payments are generally recognized as exempt from liquidation in Chapter 7 – though state laws can vary – and your attorney will help you navigate Illinois’s bankruptcy laws and start on a new road to financial freedom.

If you’re struggling financially and considering filing for Chapter 7 bankruptcy, you’re not alone. Contact an experienced bankruptcy attorney today for a free consultation.