Filing For Chapter 13 In Illinois

Filing Chapter 13 bankruptcy in Illinois is possible for anyone who has lived in the state for the last 90 days. Bankruptcy filing here requires the same standards as throughout the rest of the country. However, individuals should realize that they can only file bankruptcy in the state if they have submitted the necessary documentation to the right court system.

How to File Chapter 13 in Illinois

Illinois bankruptcy filings occur in one of the three bankruptcy districts in the state. This depends on where you live. The Northern District of Illinois, Central District of Illinois and the Southern District of Illinois are divided up based on the count you live in. Once you know which specific court you are required to file your bankruptcy petition through, the next step is to work through the process.

Gather all necessary Illinois specific bankruptcy documentation. These forms differ slightly from one district in Illinois to the next. Ensure you obtain the forms from the right district office.
Complete the forms, usually with an attorney's help. In the Chapter 13 bankruptcy, numerous tests and repayment plans may be necessary. It is often easier to complete these documents with the aid of an attorney.
Once a means test and a repayment plan has been completed, file the documents with the bankruptcy trustee. The trustee will then examine the documents to determine several things. The court wants to ensure the individual is clearly representing his or her situation and that the repayment plan is doable as well as fair to creditors.
Work through the repayment plan. In Illinois, this process will range from three to five years, depending on income and the amount of debt the individual has. Throughout this time, the bankruptcy trustee may be in contact to ask questions and to follow up.
After the repayment period is over, the bankruptcy trustee will then discharge the bankruptcy and other debts as necessary.

Keep in mind that in the state of Illinois, you are likely to sit in on the creditor's meeting, but it is rare for creditors to come. Also, creditors have the right to dispute any aspect of the bankruptcy petition during the initial process.

Hiring an Attorney

Illinois bankruptcy filings can be complex. These large court systems can be intimidating, too. For this reason, individuals should consider filing bankruptcy with an attorney's help. The attorney will provide information and complete the necessary documentation. In addition, the attorney will meet any questions the trustee has for you, to ensure your case is processed.

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