To File for Bankruptcy in Illinois
Follow these steps:
- Determine which type of bankruptcy to file for: In Illinois, there are two main types of bankruptcy that individuals typically file for—Chapter 7 and Chapter 13. Chapter 7 bankruptcy involves liquidating your assets to pay off your debts, while Chapter 13 bankruptcy involves creating a repayment plan to pay off your debts over a period of three to five years. Speak with a bankruptcy attorney to determine which type of bankruptcy is right for you.
- Complete credit counseling: Before you can file for bankruptcy, you must complete a credit counseling course from an agency approved by the U.S. Trustee’s office.
- File the necessary paperwork: You will need to file a bankruptcy petition with the U.S. Bankruptcy Court in your area. The petition will require you to provide detailed information about your debts, assets, income, and expenses.
- Attend the 341 meeting: After you file your bankruptcy petition, you will need to attend a meeting of creditors, also known as a 341 meeting. This meeting is held between you, your attorney, and the bankruptcy trustee assigned to your case. During the meeting, you will be asked questions about your finances and bankruptcy case.
- Complete bankruptcy education: In Illinois, you are also required to complete a debtor education course before your bankruptcy can be discharged.
- Discharge of debts: If your bankruptcy case is approved, your debts will be discharged, or forgiven, and you will have a fresh start.
It is important to note that filing for bankruptcy can have long-term financial consequences and should be done with careful consideration. Speak with a bankruptcy attorney to fully understand your rights and responsibilities before moving forward with the process.
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