What steps do I need to take to file for bankruptcy in Illinois?
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To file for bankruptcy in Illinois, you will need to take the following steps:
- Obtain Credit Counseling
- Determine which bankruptcy chapter is appropriate
- Chapter 7 is a liquidation bankruptcy, where most of your debts are discharged, but assets may be sold to repay creditors.
- Chapter 13 is a reorganization bankruptcy, where you are allowed to keep most of your assets, but you will need to create a repayment plan.
- If you are a business owner, you may also be eligible to file for Chapter 11 bankruptcy.
- File bankruptcy petition and pay fees
- Attend Creditors' meeting
- Complete Financial Management Course
Before you can file for bankruptcy, you must complete a credit counseling course from a government-approved agency. The course will provide you with information on options for managing debt and creating a budget.
The two most common types of bankruptcy filings for individuals are Chapter 7 and Chapter 13. You'll need to determine which chapter of bankruptcy is appropriate for your specific financial situation.
Once you have completed your credit counseling and determined which bankruptcy chapter to file, you must file a petition with the bankruptcy court. Filing fees depend on which chapter you're filing under.
After filing your petition, you will be required to attend a creditors' meeting, which is a meeting between you, your trustee, and any creditors who choose to attend.
After your debt is discharged, you will be required to take a financial management course from a government-approved agency.
It is important to note that there are certain limitations and exceptions to the advice given. For example, if you have filed for bankruptcy in the past, you may not be eligible to file again for a certain period of time. Additionally, not all debts can be discharged in bankruptcy. Creditors may also challenge your bankruptcy petition, so it is important to have an attorney assist you throughout the process.
To ensure that you take the appropriate steps and make informed decisions throughout the bankruptcy process, it is highly recommended that you seek the guidance of a licensed attorney.
