For those who live in Illinois, the information about filing bankruptcy in Illinois is important especially for those who want or need to fulfill bankruptcy. Please note that what we informed here will be able for those who live in Illinois only. Before filing the bankruptcy, many things should be understood, especially the relevant policies that everyone should know. Illinois has its bankruptcy policies and rules, which probably way different with the other states.
Before knowing the process of filing bankruptcy in Illinois, we will begin with the basic information about policies of bankruptcy. There are two things that you need to know, they are the 2005 Bankruptcy Act Credit Counseling, and 2005 Bankruptcy Act Means test. What we will describe more is the latest thing. So through the bankruptcy act, your income will be analyzed to make sure whether you qualify for the Chapter 7 or Chapter 13. Chapter 7 or what it used to call as liquidation works by liquidating all of your non-exempt properties. While the Chapter 13 or what it used to call as reorganized works by reorganizing your repayment planned debt. The court will determine the right chapter for you by evaluating your latest six months income.
For those who want to work for filing bankruptcy in Illinois, there are many things that you need to prepare before starting the process. Some of the things that you need to prepare are including your income data, the data of your past two years transaction that you can get from the bank, data of your monthly living expenses, the properties that you own and your current debts. Any other documents or data probably will be asked, such as the tax data. Every year it can be changed, so notice the current rules before you begin the process.
After you get all of the needed data and documents, you can start to process. But first, you need to look the Illinois exemptions information to determine your property. You can process it on your own or hire an attorney. Then, you will need two pages of petitions with additional documents to the Illinois district bankruptcy court. The court will determine the right bankruptcy chapter for you. You should know that there are fees for both Chapter 7 and Chapter 13. For filing the bankruptcy Chapter 7, it cost about $300. The Chapter 13 costs lower, it is around $280.
Especially if you are filing the Chapter 13, there will steps ahead before your repayment plan approved by the court. You will need to propose your repayment plan with other consideration that you need add before you submit it. The process to get the Chapter 13 is way harder than if you are filing the Chapter 7.
So before filing bankruptcy in Illinois, you need to understand the whole process and prepare the documents that will be needed. Preparing the documents will take time. You are also recommended to understand the further process if you file for the either Chapter 7 or Chapter 13.