Illinois has some specific exemptions that you should take into account when filing for bankruptcy.
You may be considering experiencing financial stress and deciding whether to file a Chapter 13 or Chapter 7 bankruptcy in Illinois.
As you read this article, you will learn how to reduce your financial burden through learning about a Chapter 7 and Chapter 13 bankruptcy in Illinois, and some additional opportunities that can help you attain the level of financial freedom.
The Illinois chapter 13 bankruptcy contains details that are not just beneficial to those residing in Illinois, but for everyone that resides in the United States. If you require more knowledge on the subject matter, you can read through our article on Chapter 13 bankruptcy. Before delving into the intrinsic details of the topic, let us take a look at Chapter 13 bankruptcy and how it differs from Chapter 7 bankruptcy.
Chapter 7 vs Chapter 13 Bankruptcy Illinois
Chapter 7 Bankruptcy: This type of bankruptcy is also referred to as “liquidation bankruptcy.” In this type of bankruptcy, debtors must show that they can’t pay their debt, as such, they file for this type of bankruptcy so that their debt can be discharged. If you’re eligible to apply for this type of bankruptcy, you can apply for it, and your debt will be discharged within the next 120 days. You can check one of the sections below, to find a calculator for finding out your chapter 13 payment arrangement, and for checking if you’re qualified for a chapter 7 bankruptcy.
Chapter 13 Bankruptcy Illinois: Chapter 13 bankruptcy is also known as “wage earners bankruptcy”. With Chapter 13 bankruptcy, you are voluntarily reorganizing you debt that is rescheduled such that the debtor pays the debt on an installment often in three or five years. To file for a chapter 13 bankruptcy, you need to hire the services of an attorney because of the technicalities involved in the process. If you’re familiar with chapter 13 bankruptcy, you will notice that people prefer it to other types of bankruptcy; this is because most people earn above the threshold of those that can file for a chapter 7 bankruptcy.
Since we’ve laid a foundation for the two types of bankruptcy, we’ll now delve into Chapter 13 Bankruptcy in Illinois. In this article, you will learn the following;
- Chapter 13 Bankruptcy Plan Payment in Illinois
- Illinois Bankruptcy Exemptions
- Chapter 13 Bankruptcy Illinois Trustees
- Illinois Bankruptcy Districts and Court Locations
- Should I File a Chapter 13 Bankruptcy in Illinois?
Chapter 13 Bankruptcy Plan Payment in Illinois
When filing for a chapter 13 bankruptcy, the first thing to do is to estimate your chapter 13 plan payment. A chapter 13 plan payment takes lots of things into account, some of which are; the Illinois administrative expense multiplier, the Illinois bankruptcy allowable living expenses, and the IRS National expense figures.
A lot of people are eager to know if they can file for Chapter 7 bankruptcy or not, and if it is the Chapter 13 bankruptcy that they’re interested in, then they’re curious to know their chapter 13 payment plan. Estimating an accurate chapter 13 bankruptcy arrangement payment by yourself can be a hectic task due to the technicalities involved in the process. A Chapter 13 bankruptcy calculator can estimate your chapter 13 payment arrangement, and check if you’re eligible for a chapter 7 bankruptcy.
You should also consider the cost to file bankruptcy in Illinois. The cost to file bankruptcy in Illinois is $313 + the estimated attorney fee of $3500 – $3800.
Illinois Means Testing
The Illinois bankruptcy means test helps you estimate whether you would qualify for a Chapter 7 bankruptcy in Illinois. It can also help determine whether you would potentially be in a 3 year or 5 year Chapter 13 bankruptcy.
Illinois Bankruptcy Exemptions
Before applying for a chapter 13 bankruptcy, ensure that you have assets that are not held by the exemptions. Even if you’re eligible for chapter 7 bankruptcy, but you have a high equity position in assets, then chapter 13 bankruptcy is the more logical option.
Illinois has some specific exemptions that you should take into account when filing for bankruptcy. If you have assets that are above Illinois’s exemptions, then those assets may be liquidated. Here’s a full list of Illinois Bankruptcy exemptions.
Illinois Chapter 13 Bankruptcy Trustees
A trustee has the duty to administer bankruptcy proceedings and liquidate debtor’s nonexempt assets. There are more chapter 7 trustees that chapter 13 trustees. Here’s a list of Chapter 7 trustees in Illinois and the list of Chapter 13 trustees in Illinois. We have also included the trustees in the table below broken out by districts.
Illinois Court Locations and Bankruptcy Districts
Illinois has a three bankruptcy districts: Northern, Centra and Southern. Let’s go through the details of each district and the court locations:
Northern Bankruptcy District Illinois
The Illinois Northern Bankruptcy District has five bankruptcy courts. First, you may want to check out the Illinois Northern District forms and local rules and orders. If you’re looking for the court location, we have included it below:
- Chicago Bankruptcy Court
- Rockford Bankruptcy Court
- Joliet Bankruptcy Court
- Lake County Bankruptcy Court
- Kane County Bankruptcy Court
Central Bankruptcy District Illinois
- Springfield Bankruptcy Court
- Peoria Bankruptcy Court
- Urbana Bankruptcy Court
Southern Bankruptcy District Illinois
- East St. Louis Bankruptcy Court
- Benton Bankruptcy Court
Should I File Bankruptcy in Illinois?
If you’re overwhelmed with debt, and you don’t want, or you’re not qualified for a Chapter 7 bankruptcy, your next best option is a Chapter 13 bankruptcy. Apart from filing for bankruptcy, other available options involve arranging for debt settlement or improving on your debt management ability. Whichever method you want to use in getting out of your messy debt situation, it’s best to research on the method, and weigh the advantages and disadvantages.
Debt can result in a high level of stress and anxiety; it can even cause some serious illnesses like high blood pressure and stroke. As such, I’ll urge you to read on the different methods of relieving stress.