Illinois Filing Bankruptcy Laws
Filing for Bankruptcy in Illinois
Make an informed decision about your financial future. Learn about Chapter 7 and Chapter 13 bankruptcy laws in Illinois, and how they might affect you. Then, speak with a local bankruptcy attorney to get answers to any specific questions you have.
After you learn more about the bankruptcy process, you will be better able to make a decision about which debt-relief option best suits your needs.
To schedule an appointment with an Illinois bankruptcy attorney near you, fill out the below form or call 877-349-1309.
For more information on Illinois’ filing bankruptcy laws, keep reading.
Illinois Bankruptcy Laws
When you meet with your Illinois bankruptcy lawyer for the first time, he or she will likely tell you about the differences between Chapter 7 and Chapter 13 bankruptcy.
During this consultation, your lawyer may conduct a “means test.” This might take the form of a series of questions about your financial situation, including your income and debts. This information will be used to see if you qualify for Chapter 7 bankruptcy or if you might be better suited for Chapter 13.
Chapter 7 bankruptcy is often called as “liquidation” because the bankruptcy trustee in your Chapter 7 bankruptcy case has the option to liquidate, or sell, any of your non-exempt assets.
Most people who file Chapter 7 bankruptcy do not own any non-exempt assets, so there is no property for the trustee to sell. Chapter 7 bankruptcy can also be a good option is you have lots of unsecured debt, such as debt from credit cards or payday loans.
Homestead
- Up to $15,000 for residential property.
Wages
- 85 percent of weekly earnings.
Automobiles
- $2,400 exemption for one vehicle.
Personal Property
- 100 percent exemption for necessary clothes, Bibles, school books and family pictures.
- $1,500 in implements, books and tools of the trade.
- Up to $4,000 for any other personal property.
Chapter 13 bankruptcy is also called “reorganization.” People who own more property may choose to file Chapter 13 bankruptcy in order to keep most of their assets.
After filing Chapter 13 bankruptcy, the debtor creates and proposes a three-five year repayment plan to submit to the bankruptcy court for approval. The repayment plan gives the debtor time to catch up on past due bills.
Speak With an Illinois Bankruptcy Lawyer Today
Many people who consider filing bankruptcy in Illinois may feel overwhelmed by the complexity of the state’s bankruptcy laws.
To make sure you are not confused about the laws, your Illinois bankruptcy can answer specific questions about how the laws affect you.
We make it easy to find an Illinois bankruptcy lawyer at Total Bankruptcy. Simply fill out the free bankruptcy review on this page or call us at 877-349-1309, and we’ll connect you with an local bankruptcy lawyer immediately.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.
Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.
Read the full text of the Illinois bankruptcy laws
