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The state of Illinois has three federal judicial districts—each with its own bankruptcy court. On the bankruptcy court websites, you’ll find the court’s local rules and instructions for filing your paperwork (click on “Filing Without an Attorney”).
Individuals can file bankruptcy without an attorney, which is called filing pro se. However, seeking the advice of a qualified attorney is strongly recommended because bankruptcy has long-term financial and legal outcomes.
You should check your court’s website before filing any documents. If you file bankruptcy pro se, you may be offered services by non-attorney petition preparers. By law, preparers can only enter information into forms. They are prohibited from providing legal advice, explaining answers to legal questions, or assisting you in bankruptcy court.
, and the local rules of the court in which the case is filed. Local rules, along with other useful information, are posted on the court's website and are available at the local court's intake counter. Court employees and bankruptcy judges are prohibited by law from offering legal advice. Bankruptcy Forms are available to the public free of charge.
Collect Your Illinois Bankruptcy Documents. ... Take a Credit Counseling Course. ... Complete the Bankruptcy Forms. ... Get Your Filing Fee. ... Print Your Bankruptcy Forms. ... File Your Forms With the Illinois Bankruptcy Court. ... Mail Documents to Your Trustee. ... Take a Debtor Education Course.More items...•
In order to be eligible to file for Chapter 13 bankruptcy, you must have regular income and meet certain debt limitations for your unsecured and secured debts (unsecured debts must be less than $383,175 and secured debts must be less than $1,149,525 as of 2015).
1. You Can File Individually If You Are Married. Married couples have the freedom to file for bankruptcy together or individually. Couples typically file together when they have joint debts, but spouses can file by themselves if they choose to.
Filing for bankruptcy can negatively impact your immediate financial future. Obtaining credit after filing for bankruptcy could mean increased interest rates. Obtaining credit after filing for bankruptcy might require security deposits.
Filing for bankruptcy in Illinois costs $299 for a Chapter 7, or liquidation, bankruptcy, and $274 for a Chapter 13, or reorganization, bankruptcy. However, federal law does provide that the Chapter 7 filing fee may be waived if your household meets certain income limits prescribed by the federal government.
If you live in a three-person household and your income is below $91,581, you qualify for Chapter 7 bankruptcy in Illinois. If your household income is above the state median, you can still qualify for Chapter 7 bankruptcy based on your disposable income.
With Chapter 7, those types of debts are wiped out with your filing's court approval, which can take a few months. Under Chapter 13, you need to continue making payments on those balances throughout your court-instructed repayment plan; afterwards, the unsecured debts may be discharged.
Most people prefer Chapter 7 bankruptcy because, unlike Chapter 13 bankruptcy, it doesn't require you to repay a portion of your debt to creditors. In Chapter 13 bankruptcy, you must pay all of your disposable income—the amount remaining after allowed monthly expenses—to your creditors for three to five years.
When is bankruptcy removed from your credit report? A Chapter 7 bankruptcy can stay on your credit report for up to 10 years from the date the bankruptcy was filed, while a Chapter 13 bankruptcy will fall off your report seven years after the filing date.
While the goal of both Chapter 7 and Chapter 13 bankruptcy is to put your debts behind you so that you can move on with your life, not all debts are eligible for discharge.
Bankruptcies are considered negative information on your credit report, and can affect how future lenders view you. Seeing a bankruptcy on your credit file may prompt creditors to decline extending you credit or to offer you higher interest rates and less favorable terms if they do decide to give you credit.
Bankruptcy is a legal status that usually lasts for a year and can be a way to clear debts you can't pay. When you're bankrupt, your non-essential assets (property and what you own) and excess income are used to pay off your creditors (people you owe money to). At the end of the bankruptcy, most debts are cancelled.
Failure to do so may result in dismissal of the case, or other sanctions. It is always best to seek legal advice and representation from an attorney experienced in bankruptcy law and procedure.
Bankruptcy can be complicated. The staff of the U.S. Bankruptcy Court Clerk's office provides a variety of services; however, they are not permitted to assist with the preparation of the voluntary petition, schedules, or other documents, nor can they provide legal advice. All parties must comply with the U.S. Bankruptcy Code, and the Federal Rules of Bankruptcy Procedure. Failure to do so may result in dismissal of the case, or other sanctions. It is always best to seek legal advice and representation from an attorney experienced in bankruptcy law and procedure.
If not, your bankruptcy case may be dismissed. Bankruptcy fraud is a felony under federal criminal law and may result in arrest, fine or imprisonment. General information about bankruptcy for debtors not represented by an attorney may be found in our Pro Se Debtor Guide (see the link on the left).
Debtors must list all property and debts in their bankruptcy schedules. If a debt is not listed, it is possible the debt will not be discharged. (Lists of the documents [including schedules] that debtors must file are set out on Form B2000 (pdf), one of the Director's Procedural Forms.)
It is very important that a bankruptcy case be filed and handled correctly. The rules are very technical, and a misstep may affect a debtor's rights. For example, a debtor whose case is dismissed for failure to file a required document, such as a credit counseling certificate, may lose the right to file another case or lose protections in a later case, including the benefit of the automatic stay. Bankruptcy has long-term financial and legal consequences - hiring a competent attorney is strongly recommended.
Please be aware that bankruptcy fraud is a crime. Pro se litigants, whether debtor or creditor, are expected to follow the rules that govern procedures in the federal courts. Pro se litigants should be familiar with the United States Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and the local rules of the court .
Corporations and partnerships must have an attorney to file a bankruptcy case. Individuals, however, may represent themselves in bankruptcy court. While individuals can file a bankruptcy case without an attorney or " pro se ," it is extremely difficult to do it successfully.
The following is a list of ways your lawyer can help you with your case. Advise you on whether to file a bankruptcy petition. Advise you under which chapter to file. Advise you on whether your debts can be discharged. Advise you on whether or not you will be able to keep your home, car, or other property after you file.
Non-attorney Petition Preparers. If you file bankruptcy pro se, you may be offered services by non-attorney petition preparers. By law, preparers can only enter information into forms. They are prohibited from providing legal advice, explaining answers to legal questions, or assisting you in bankruptcy court.
Bankruptcy Forms are available to the public free of charge.
Filing personal bankruptcy under Chapter 7 or Chapter 13 takes careful preparation and understanding of legal issues. Misunderstandings of the law or making mistakes in the process can affect your rights. Court employees and bankruptcy judges are prohibited by law from offering legal advice.
The bankruptcy process falls under federal law, not Illinois state law, and it works by unwinding the contracts between you and your creditors —that's what gives you a fresh start.
File your case in the court covering the area you've lived the most during the 180 days before filing (or the last 91 days). You'll find filing information and local forms on the court websites (click the links).
After Filing for Bankruptcy in Illinois. Your creditors will stop bothering you soon after you file. It takes a few days because the court mails your creditors notice of the "automatic stay" order that prevents most creditors from continuing to ask you to pay them. Here's what will happen next:
When a bankruptcy exemption doesn't cover the property, you'll either lose it in Chapter 7 or have to pay for it in the Chapter 13 repayment plan. Choosing state or federal exemptions. Unlike some other states, you can't choose between the state exemption list and the list of federal bankruptcy exemptions. You must use Illinois's exemptions.
Illinois Homestead Exemption. This exemption helps you keep a home. The homestead exemption protects up to $15,000 in your residential home. You can use the exemption to protect your farm, mobile home, a lot with buildings, condominium, or cooperative, too.
Most people file either Chapter 7 or Chapter 13. If you don't know the differences between the two, you're not alone. The short explanation below and our handy Chapter 7 versus 13 chart will help clear things up.
Exempt your property carefully. The bankruptcy trustee —the court-appointed official assigned to manage your case—will review the exemptions. A trustee who disagrees with your exemptions will likely try to resolve the issue informally. If unsuccessful, the trustee will file an objection with the bankruptcy court, and the judge will decide whether you can keep the property.