Bankruptcy illinois
If your debts are troubling you to an extent that you have no means of paying them off then you can file for bankruptcy. Bankruptcy is a legal declaration that you are unable to pay off your debs and seek relief. In Illinois individual bankruptcy can be filed under chapter 7 and 13, corporate bankruptcy can be filed under chapter 11 and bankruptcy for those involved in agriculture or rural business can be filed under chapter 12. Though bankruptcy does not involve taking compulsory help from an attorney but it is always advised that you hire an attorney so that you can be guided properly through the whole process. Since the implementation of the new laws for filing individual bankruptcy the process of filing is not as easy as before and only an attorney can guide you properly on the paperwork and exemptions.
The process of filing bankruptcy in Illinois
The first step before filing bankruptcy is getting a counseling from an institution that is certified, by the Illinois bankruptcy court so that the court is sure about the fact that there is no alternative remaining for you other than filing bankruptcy. This counseling should be taken 120 days before the petition is filed. In case bankruptcy is the only solution then you are required to file a petition with the bankruptcy court. However, before doing so you would have to take up the means test, which would determine the chapter under which you can file bankruptcy. To undergo the means test the court requires you to disclose your total income and expenses so that it can be determined whether your income is above or below the state specified income for means test. In Illinois the median income for a single earner is $42,995 ; for a family of two: $54,599; for three members: $64,184; and for four: $74,705.
If your income is lower than the median income then you are allowed to file under chapter 7 and if it is more then you are supposed to file under chapter 13.In either case you are required to provide details of your income and expenses.Along with this you are required to provide details of your assets and debts and also names and contact addresses of your creditors.In case of filing chapter 13 you are required to provide a reorganization plan which would suggest how you plan to pay off your debts in 3-5 years of time.
Once this is done then the court appoints a trustee for your case who would preside over the meetings and payments to the creditors.In case of chapter 7 the trustee liquidates the assets and distributes the payments among the creditors. In case of chapter 13 the creditor distributes the payments among the creditors. After this a creditor meeting is called wherein the creditors are informed that you are filing bankruptcy and they are free to ask you questions about your assets and how you intend to pay them back. Once all the issues are decided upon the trustee would submit the application in the court and the court would approve it or reject it based on certain criteria. Once the payment plan is accepted the trustee gets the payment and this is distributed among the creditors.
Illinois Exemptions
When you file for bankruptcy then there are many of your assets and some form of income that is exempt from the process. In Illinois the following things are exempted from bankruptcy. Homestead: personal or real estate property up to $7,500 ;Personal Property:Health ids, family photos, personal injury recovery up to $7,500; vehicles up to $1,200, etc Insurance:health benefits, disability benefits, life insurance policy if beneficiary is child or spouse, homeowners insurance up to $7,500, etc Pensions: municipal employees, firefighters, county employees, general assembly members, police officers, ERISA-qualified benefits, etc Besides this there are other things like public benefits, tools of trade and certain wages that are exempt from the process of bankruptcy.
Taking the help of an attorney
As mentioned previously that hiring an attorney is not compulsory according to the laws. However, it is advised that you hire one so that you can be sure that your case is in safe hands. The attorney can guide you properly and can also help you make a reorganization plan. The paperwork involved in filing bankruptcy is vast and difficult to understand. The attorney takes care of these issues and makes sure that all the papers and documents are filed as per the law and requirement.
Some of the bankruptcy attorneys in Illinois are mentioned below:
M. Hedayat & associates :
They take up chapter 7,11 and 13 cases. You can contact them at 425 Quadrangle Dr. #101 Bolingbrook IL 60440; p (630) 378-2200, f (630) 578-2878.
C. David ward:
They help people file chapter 7 and 13 bankruptcies. You can contact them at 1700 North Farnsworth, Suite 11C, Aurora, Illinois 60505 ; Phone: 630-585-3164, Fax: 630-820-8582.Or at 2756 Route 34, Oswego, Illinois 60543 ; Phone: 630-554-3065.
Leibowitz law center:
They take up chapter 7, 11 and 13 bankruptcy cases. You can contact them at 420 W. Clayton Street Waukegan, IL USA 60085-4216; Telephone: 847.249.9100, Fax: 847.249.9180, Hotline: 866-LAKELAW.
Dixon & Johnston:
They take up chapter 7 and 13 bankruptcy cases.You can contact them at 103 West Main Street, Belleville, Illinois 62220-1501 ; Telephone: 618-233-1103; 1-800-733-2440, Fax: 618-233-9368
Horowitz & weinstein:
They handle chapter 7 and 13 bankruptcies. You can contact them at 311 West Superior Street, Suite 525, Chicago, IL 60610 ; phone: 312-787-5533, fax: 312-573-0023.
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