Most lenders allow you to keep your house or car if you agree to keep making the payments. Interest rates, loan amounts and pay off dates usually remain the same. 

The filing of bankruptcy stops the collection of mines through wage garnishments or wage assignments. In fact, if you have given a voluntary wage assignment, you can revoke the wage assignment without filing a bankruptcy. 

4. Can I use Bankruptcy to catch up on my house or car payments? 

Yes, bankruptcy can be used to 'catch up' late payments or to stop foreclosures, tax liens, and judgements. Usually, if you want to keep your home, a bankruptcy will help you do it.  

FAQ's - collections, taxes, bank charges, wage assignments, judgements, and court proceedings. 

FAQ's - Qualifying for bankruptcy, high incomes, credit card debt, restoring credit, collection calls, banks and bad checks

Most lenders allow you to keep your house or car if you agree to keep making the payments. Interest rates, loan amounts and pay off dates usually remain the same. 

2. Can I keep my house and car if I file Bankruptcy? 

1. Will Bankruptcy keep me from losing my house?

Yes, Federal and Illinois law allows you certain exempt items such as household goods, jewelry, tools of the trade, clothes, and many other items. This means you usually keep all personal items. 

6. Can you negotiate credit card debt? 

1. Can I keep my household good, jewelry, and clothes in Bankruptcy?

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4. Can Bankruptcy stop the I.R.S. or the Illinois Department of Revenue from collecting? 

Yes, in most cases bankruptcy can be used to allow you to keep the car and pay the actual value of the car. The rest of the debt becomes unsecured and may be discharged or eliminated in the bankruptcy.

3. Can you take Bankruptcy against a court judgement? 

1. I have huge medical bills and no insurance. Does Bankruptcy eliminate my bills?  

Yes, Bankruptcy will eliminate all the medical bills u to date of the bankruptcy filing. Private medical providers, such as doctors, can deny future services. Public service providers, such as emergency rooms and hospitals, can not deny future services. 

Collections calls should stop once you file your bankruptcy. If they continue, the creditor is in violation of the automatic stay order of the course and this could result in the creditor being fined or sanctioned by the bankruptcy court. 

5. We have our house paid off but our other debts are out of control. We are being sued and my wages are being garnished. Can I file for Bankruptcy and still keep my house? 

Almost anyone who has reached a point where debt problems are causing lifestyle problems can file a bankruptcy. There are no requirements or minimums on debt amounts, income levels or asset amounts.  

FAQ's - Medical bills and medical services 

4. I own a car worth $3,000 but I owe over $10,000 on the car. Can I use Bankruptcy to keep the car and pay only what it is worth? 

4. I used a pay day loan service and gave them a wage assignment. Can I take bankruptcy against them and not pay them or stop payment on the check I gave them?  

Yes, high income does not mean you can not take bankruptcy. You probably will have to do a Chapter 13 Bankruptcy because of your high income but you still get all the protections afforded someone who takes bankruptcy. 

Yes, as you know, creditors who get judgements can use those judgements to take your home, wages, and other assets. Bankruptcy can be used to stop the creditors while you reorganize your finances in order to keep your home. 

2. I did a Chapter 7 Bankruptcy last year. Now I have a major medical problem with huge bills. How long do I have to wait to file another bankruptcy?

1.How do I qualify for Bankruptcy? 

5. I gave a financial company a list of my personal property and pledged it to get a loan. If I take Bankruptcy, can I keep my furniture, television, etc.? 

Yes, bad checks themselves can not be discharged in bankruptcy but the bank charges, civil charges of up to $1,000.00 per check, attorney fees and court cost can be eliminated in bankruptcy. 

FAQ's - home, foreclosure and rentals

FAQ's - cars, no insurance, and personal property

3. How long does it take for Bankruptcy to stop collection calls? 

2. Will I be able to get credit again? 

View below all FAQ's for questions you may have about filing bankruptcy. See answers for questions regarding home, foreclosures, insurance, personal property and more. 



You can file another type of bankruptcy, a Chapter 13 bankruptcy right now. You can only file a Chapter 7 Bankruptcy once every 6 years, but you can file a Chapter 13 Bankruptcy at any time subject to a few basic rules. 

3. They are trying to repossess my car. Can I stop them in Bankruptcy? 

4. My bank charged me several hundred dollars for bounced checks. Can I eliminate those bank charges in bankruptcy? 

2. Can Bankruptcy stop a court proceeding?

6. Can we use Bankruptcy to reorganize our debts and catch up on house payments? 


Yes, unless you used the money you borrowed to buy the item pledged, you can take bankruptcy on the finance company loan and still keep exempt items you pledged as security for the loan.  

Yes, Bankruptcy can discharge or eliminate most court judgements for money damages, attorney fees, collections, punitive damages or any other money or debt related judgment.  

Yes, the Illinois Secretary of State will re-instate a suspended driver's license after bankruptcy discharges the financial obligations to the injured parties and insurance company. 

3. Will Bankruptcy stop a foreclosure

Yes, Bankruptcy stops all collection activity, including collections by the Internal Revenue Service and Illinois Department of Revenue. In fact, under certain circumstances, interest and penalties may be waived and old tax debt may be discharged or eliminated in Bankruptcy.   

Yes, our law firm does many credit card negotiations and often settles these debts for as little as 20-30 cents on the dollar. Remember, to negotiate credit card settlements, you must have the money to pay the settlement amount immediately. Credit card companies will not reduce the debt and then take installment payments. 

1. Can stop wage garnishment or wage assignments? 

Yes, if you are behind on secured loan payments, you can use bankruptcy to catch up on delinquent payments on houses, cars, jewelry or personal property loans. These catch up payments can be decided into as many as 60 monthly installments. 

5. Can I take Bankruptcy even though I make over $150,000 per year? 

Yes, you can use bankruptcy to propose a plan to the court and your creditors to catch up the late payments over a 3 to 5 year period. This will allow you to keep all the real estate you own. 

Yes, most people can get credit within one year after bankruptcy. This is high interest credit and should be voided if possible. Within two year you should return to more normal credit and within three years, you could be back to very good credit. Of course, normal credit guidelines influence your credit worthiness. 

Yes, the Illinois Secretary of State will re-instate a suspended driver's license after bankruptcy discharges the financial obligations to the injured parties and insurance company. 

Yes to both questions. A voluntary wage assignment can be revoked and this will stop the lender any wage garnishment. You can also issue a stop pay order to your bank on the post dated check.  

2. I was uninsured and in an automobile accident. Now the Secretary of State has taken my license. Can I get it back through Bankruptcy? 

When you file bankruptcy, the court issues an automatic stay order. This stays or halts all pending court activities that involve collection or suits for money damages. It does not stop criminal cases, divorces or other cases that do not involve money or collections.