Filing Bankruptcy Alone vs. Filing With An Attorney You are not required by law to hire an attorney to declare bankruptcy. People are allowed to represent him or herself as a pro se debtor. You will simply contact the local bankruptcy court and obtain all forms and requirements directly through them. Filing alone is not an easy task.
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.
Everyone who wants to take advantage of the protections the bankruptcy code offers by filing bankruptcy in Illinois has to first complete a credit counseling class. In fact, without completing this class first, you are not eligible to be a debtor in any bankruptcy case.
, 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.
Since filing bankruptcy in Illinois is a legal proceeding, consider printing not one but two full copies of your documents and keeping one for your own files. When you head to the court for the purpose of filing bankruptcy in Illinois, it's important to bring a government issued picture ID with you.
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.
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.
If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don't have the option of filing Chapter 7.
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.
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.
Learn how to "discharge" or clear debts by filing for Chapter 7 bankruptcy protection. Chapter 7 bankruptcy erases or "discharges" credit card balances, medical bills, past-due rent payments, payday loans, overdue cellphone and utility bills, car loan balances, and even home mortgages in as little as four months.
Medical Expenses. Job Loss. Poor or Excess Use of Credit. Divorce or Separation. Unexpected Expenses.
Good news. If your average household gross earnings for the six months before filing for bankruptcy is at or below the state median for your family size, you may file under Chapter 7 (assuming you meet all other requirements).
Illinois Median Income Standards for Means Test for Cases Filed In 2022Household SizeMonthly IncomeAnnual Income6$11,120.75$133,449.007$11,945.75$143,349.008$12,770.75$153,249.007 more rows•Jul 28, 2019
Certain family and household expenses might help you pass the means test for Chapter 7 bankruptcy. If your income is higher than your state's median income for a similar size household, you must complete the entire bankruptcy means test form to determine whether you qualify for Chapter 7 bankruptcy.
Can I file electronically in Illinois Northern District Bankruptcy Court? Am I Required To?
LegalConsumer.com has provided free bankruptcy information to more than 10 million consumers since 2006, and the Free Means Test Calculator (2021 Edition) has helped hundreds of thousands of consumers figure out where they stand in relation to the bankruptcy means test, created by the 2005 BAPCPA bankruptcy act.
The free bankruptcy means test calculator is a free, automated version of the official Means Test Form you must file with the court.
The Lake County Bankruptcy Court info page provides maps and information about your local federal district bankruptcy court
Real or personal property including a farm, lot, & buildings, condo, co-op, or mobile home to $15,000 (husband and wife may double); sale proceeds exempt for 1 year
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.
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.
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. Filing personal bankruptcy under Chapter 7 or Chapter 13 takes careful preparation and understanding of legal issues.
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.
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.
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.
The bankruptcy process may be simple enough to handle on your own if the following are met: 1 You own few assets 2 Your household income is below your state's median 3 You haven't been accused of fraud
In general, you need to at least pay a filing fee and the credit counseling and financial management course fees to finalize your bankruptcy petition. But if you have no money, you can ask for a fee waiver (in Chapter 7 cases) or ask the bankruptcy judge to roll the payment in your repayment plan (in Chapter 13 cases).
Even though your case is relatively uncomplicated, a bankruptcy case requires you to fill out extensive paperwork and have a good knowledge of the Bankruptcy Code. Thus, it may be in your best interest to at least have an initial consultation with an attorney to make sure you are on the right course.
You'll have to attend your “ Meeting of Creditors " on the scheduled date. Although your creditors won't actually be present , the trustee will be and will ask you a number of standard questions about your case. Be sure to answer truthfully and accurately.
Yes, you can legally file for bankruptcy without a lawyer. But should you? Every year, thousands of Americans find themselves too broke to pay off their debts, yet unable to afford bankruptcy. It probably comes as no surprise that attorneys' fees make up the lion's share of bankruptcy expenses.
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).
If you're experiencing severe financial difficulties, bankruptcy can provide a path to debt relief and help you get a fresh start. Whether you are just starting to consider bankruptcy or have already filed, getting a bankruptcy lawyer involved can help you maximize the benefits afforded to you by the United States Bankruptcy Code.
Not sure what to ask a bankruptcy lawyer? Here are a few sample questions to get you started:
It is always a good idea to research your bankruptcy lawyer prior to hiring. Every state has a disciplinary organization that monitors attorneys, their licenses, and consumer complaints. By researching lawyer discipline you can: