How to File a Chapter 13 Bankruptcy in Illinois
In Illinois, Chapter 13 bankruptcy allows debtors to come up with a plan to repay all or a portion of their debt. Illinois bankruptcy courts require the plan to give priority to secured debts such as auto loans and mortgages, but the debtor must include as much unsecured debt, such as credit cards and personal loans, as possible. Since the Chapter 13 bankruptcy process can be complicated, it is important to have knowledge of both federal and Illinois-specific rules to file Chapter 13 successfully.
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Instructions
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Attend a pre-bankruptcy credit course that the Illinois bankruptcy court in your jurisdiction has approved to give credit counseling certificates. Complete the class within 180 days of filing bankruptcy. Look for a list of approved courses on the court website or contact the court by phone for a list.
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Get the bankruptcy petition from your lawyer or download the forms from the court website in your jurisdiction. Take the means test to make sure you can file Chapter 13 bankruptcy. If your income is below the Illinois median income of $45,941, as of 2010, you cannot file Chapter 13 and you must file Chapter 7 bankruptcy instead.
Fill out the rest of the petition documents which ask for information about your assets, debts, expenses and income. Include all creditors so you can discharge all debts. Be honet about your income and assets or you may face dismissal of your case for fraud or abuse of the bankruptcy process.
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File the petition at the court house or give it to your lawyer, who will file it for you. Pay the Chapter 13 filing fee of $274, as of October 2010. Pay by attorney check, cashiers check, money order or cash if you have a lawyer. Make payment by cash or money order if you do not have a lawyer because Illinois bankruptcy courts do not allow pro se debtors (those filing for bankruptcy without a lawyer's help) to pay by check. The court will appoint a trustee to assist and manage the bankruptcy proceedings. Get a date for the 341 meeting in which you will answer questions from the trustee and creditors about your case.
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Create a plan to repay all or some of your debt. Include as much debt as you can pay within three to five years, but only include income that is left over after paying expenses such as rent, utilities and groceries. File the plan at the court house within 15 days of turning in your petition to complete the filing portion of the Chapter 13 bankruptcy process.
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