how to file for bankruptcy in illinois without a lawyer

How to File Bankruptcy in Illinois for Free

• Collect Your Illinois Bankruptcy Documents. ...
• Take Credit Counseling. ...
• Complete the Bankruptcy Forms. ...
• Get Your Filing Fee. ...
• Print Your Bankruptcy Forms. ...
• Go to Court to File Your Forms. ...
• Mail Documents to Your Trustee. ...
• Take Bankruptcy Course 2. ...
• Attend Your 341 Meeting. ...
• Dealing with Your Car. ...

Full Answer

Can I file bankruptcy without a lawyer in NY?

Filing Without an Attorney Filing for Bankruptcy Without an Attorney 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.

How do I file bankruptcy in Illinois?

Nov 14, 2021 · Although bankruptcy is a negative credit event, it is possible to restore your credit after bankruptcy. It may not even take that long to do so depending on

Is filing for bankruptcy in Illinois different in other states?

Jun 21, 2019 · If you don't have a lawyer helping you, you’ll have to submit all your Illinois bankruptcy forms to the court in paper. It's a good idea to print a checklist like this one, to help make sure you don’t miss anything as you go.

Do I need an attorney to file bankruptcy in Michigan?

If you’re considering filing bankruptcy without an attorney, you certainly can do it — but that doesn’t mean you’ll actually be able to do it without making costly mistakes. To clarify, in Illinois and Missouri, corporations and companies with more than a single owner are required to file bankruptcy through an attorney. Alternatively, individuals may legally file bankruptcy without …

How much does it cost to file for bankruptcy in Illinois?

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.

How do I file bankruptcy with no money in Illinois?

How to File Bankruptcy in Illinois for FreeCollect Your Illinois Bankruptcy Documents. ... Take Credit Counseling. ... Complete the Bankruptcy Forms. ... Get Your Filing Fee. ... Print Your Bankruptcy Forms. ... Go to Court to File Your Forms. ... Mail Documents to Your Trustee. ... Take Bankruptcy Course 2.More items...•Oct 9, 2021

How much cash can you keep when filing Chapter 7 in Illinois?

Illinois law also gives each individual the right to exempt up to $4,000 in equity for any other personal property, including cash or money in the bank. If a husband and wife file jointly for bankruptcy, each spouse is entitled to claim these exemptions as well.

How do I qualify for Chapter 7 in Illinois?

Chapter 7: The means testAdd up all of your income from the last full 6 months. So if you are filing on September 15th, include all income between March 1st and August 31st.If you are married and file a joint bankruptcy case, you will also need your spouse's total income for the last 6 months.Multiply by 2.

What assets are protected from creditors in Illinois?

Illinois has strict laws as to what a creditor can and cannot take....Income from:Social security.Unemployment compensation.Public assistance.Veteran's benefits.Disability benefits.Private pensions.Alimony and child support payments.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

The biggest difference between Chapter 7 and Chapter 13 is that Chapter 7 focuses on discharging (getting rid of) unsecured debt such as credit cards, personal loans and medical bills while Chapter 13 allows you to catch up on secured debts like your home or your car while also discharging unsecured debt.

Will I lose my house if I file Chapter 7 in Illinois?

Q: Can I file a Chapter 7 bankruptcy and keep my house and car? A: It is unlikely a person will lose their house or car after filing Chapter 7 bankruptcy.

What is the Homestead Act in Illinois?

Homestead protection laws are designed to prevent homeowners from becoming homeless as a result of economic hardship. Under certain conditions, these laws allow individuals to register a parcel of real property as a "homestead," and thus off limits to certain creditors.

What is the means test for Chapter 7?

The bankruptcy means test determines who can file for debt erasure through Chapter 7 bankruptcy. It takes into account your income, expenses and family size to determine whether you have enough disposable income to repay your debts.

How to file for bankruptcy in Illinois?

Once the bankruptcy court receives your voluntary petition, your creditors have to stop coming after you. Collect Your Illinois Bankruptcy Documents. Take Credit Counseling. Complete the Bankruptcy Forms.

What is the purpose of Chapter 7 bankruptcy in Illinois?

The primary goal of every Chapter 7 bankruptcy in Illinois is for the court to enter a discharge order that will forever ban your creditors from attempting to collect from you. Before a discharge can be entered in their case, all filers have to complete a course on financial management.

Where is the Northern District?

The Northern District has locations in Rockford, Chicago, Joliet, Park City, and Geneva. The county you live in determines which of the two divisions within this district will handle your Chapter 7 bankruptcy in Illinois and where the 341 meeting will take place .

What are the three divisions of Illinois?

The Central District of Illinois covers 46 of Illinois' 102 counties and is divided into three divisions, the Peoria Division, the Urbana Division, and the Springfield Division . Each division has its own courthouse, located in the cities of Peoria, Urbana and Springfield, respectively.

Can you file for bankruptcy with a car loan in Illinois?

Your car will play up to two distinct roles in your Chapter 7 bankruptcy in Illinois. If you have a car loan, it is a debt that you have to include in your schedules. Since it is a secured debt you will have to disclose your intentions with respect to what you want to do with the car to the court. This is done by filing the so-called Statement of Intentions.

Can you file bankruptcy in Illinois if you are Chapter 7?

Illinois residents must use Illinois bankruptcy exemptions to protect their assets in a Chapter 7 bankruptcy in Illinois. While some federal nonbankruptcy exemptions are available, the federal bankruptcy exemptions may not be used. The Illinois bankruptcy exemptions include, among others, exemptions for cars, personal property such as clothing and furniture, and a wildcard exemption of $4,000 that can be used to protect any asset.

How much does it cost to file for bankruptcy?

The bankruptcy courts charge a filing fee for all types of bankruptcy. At the moment, the Chapter 7 bankruptcy filing fee is $338 . If it’s not a hardship, plan on paying this amount when submitting your documents to the court.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

The process begins with deciding what type of bankruptcy you want to file: Chapter 7 or Chapter 13. Chapter 7 bankruptcy is used to discharge debts, whereas Chapter 13 bankruptcy is a debt reorganization plan.

Can I file for bankruptcy in Illinois without an attorney?

Alternatively, individuals may legally file bankruptcy without being represented by a bankruptcy attorney. However, you will be hard-pressed to find anyone, attorney or not, that will recommend undertaking such a complicated legal endeavor without an attorney.

What is a non-attorney petition preparer?

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.

Can you file bankruptcy under Chapter 7?

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.

Can I file for bankruptcy 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. Filing personal bankruptcy under Chapter 7 or Chapter 13 takes careful preparation and understanding of legal issues.

What property can you claim in bankruptcy?

Each individual who files a bankruptcy is entitled to keep any property that qualifies for an exemption under either federal or Illinois law. For some types of property, such as family pictures, necessary wearing apparel, worker compensation benefits, qualified retirement plans, IRAs, and life insurance, the value and amount of property an individual can claim as exempt is unlimited. In other cases, however, the equity an individual can claim as exempt is limited by a fixed dollar amount. Common examples of such exemptions include: 1 Your personal residence (equity of $15,000, or $30,000 for spouses filing jointly); 2 Compensation for personal injury claims ($15,000); 3 Motor vehicle (equity of $2,400 for each individual owner); 4 Tools or books used in your occupation ($1,500).

What debts are not discharged in bankruptcy?

These debts include debts for money or property obtained by false pretenses and debts for willful and malicious injury by the debtor to another entity or to the property of another entity. If the bankruptcy judge grants the creditor's request, the debt owed to that creditor will not be discharged.

What are the two types of bankruptcy?

For individuals, there are two main types of bankruptcies that can be filed: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 cases are also referred to as "liquidation" cases, while Chapter 13 cases are commonly referred to as "debt adjustment" or "wage earner" cases. Individuals may also be eligible for a Chapter 11 bankruptcy, ...

How long does it take to file Chapter 7?

In order to be eligible for a Chapter 7 case, you must receive credit counseling from an approved agency within 180 days prior to filing. When you file, you are required to provide the court with a certificate from the agency describing the services you received along with a copy ...

What happens when you file Chapter 7?

When you file for Chapter 7 liquidation, the petition operates as an automatic stay, which generally prevents creditors from pursuing debt collection actions against you unless the bankruptcy judge approves it first.

How long does bankruptcy stay on your credit report?

A bankruptcy can remain on your credit report for up to 10 years, but many people are able to raise their credit score to a relatively good level within a few years after bankruptcy.

Can you keep your property after bankruptcy?

Each individual who files a bankruptcy is entitled to keep any property that qualifies for an exemption under either federal or Illinois law. For some types of property, such as family pictures, necessary wearing apparel, worker compensation benefits, qualified retirement plans, IRAs, and life insurance, the value and amount ...

How long does a Chapter 7 bankruptcy last?

A Chapter 7 is what you think of as a traditional bankruptcy, where you walk away from your debt and get a fresh start. A Chapter 7 case lasts for a significantly shorter amount of time than a Chapter 13 case. A Chapter 13 can be much more complicated. A Chapter 13 involves a repayment plan that will run for three to five years.

How to determine if you qualify for Chapter 7?

First you will need to determine if you are eligible to file a Chapter 7 by passing the means test. If you are below a certain threshold for your state you will qualify, otherwise you need to complete both parts of the means test calculation to determine your disposable income.

What are non-dischargeable debts?

There are also debts which are non-dischargeable in a bankruptcy case. Non-dischargeable debts include things like child support, alimony, most tax debt, etc. If the bulk of your debts are non-dischargeable a Chapter 7 bankruptcy may not offer the relief you are seeking.

Is bankruptcy good for unsecured debt?

Bankruptcy is most helpful to people with unsecured debt, like credit cards and medical bills, because these kind of debts are dischargeable. You can potentially walk away from them completely. Secured debts are those which are tied to a specific item as collateral.

How long does it take to get a trustee's meeting?

This is generally a short proceeding, maybe 15-20 minutes, and Trustees are accustomed to working with pro se debtors.

Do I need an attorney to file for bankruptcy?

You are not required to hire an attorney to file bankruptcy. You can do so for free, or with a legal aid organization. Written by Attorney Eva Bacevice. Updated October 7, 2020.

How does bankruptcy work in Illinois?

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.

Who will review the exemptions in bankruptcy?

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.

How to qualify for Chapter 13?

Qualifying for Chapter 13 can be an expensive proposition because the extra benefits come at a hefty price and many people can't afford the monthly payment. To qualify, you'll pay the larger of: 1 your priority nondischargeable debt 2 the value of nonexempt property, or 3 your disposable income.

What is the homestead exemption in Illinois?

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.

What is the wildcard exemption?

The wildcard exemption lets you choose personal property (not real estate) up to a value of $4,000. Not only can this exemption be applied to luxury property, but it's possible to add it to other exemptions, too. For instance, using it in conjunction with the motor vehicle exemption could help you retain a more valuable car. (735 ILCS § 5/12-1001 (b).)

How long does it take for creditors to stop bothering you?

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:

Can you lose your car if you file Chapter 13?

So you could lose your home or car if you're behind when you file. Chapter 13 bankruptcy. By contrast, Chapter 13 filers must pay creditors some or all of what they owe using a three- to five-year repayment plan. But the payment plan allows Chapter 13 to offer benefits not available in Chapter 7.