How to file for bankruptcy in illinois?

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Filing for bankruptcy can be a complex and overwhelming process, but it can also provide individuals and businesses with a fresh start and a chance to regain control of their financial situation. If you are considering filing for bankruptcy in Illinois, it is important to understand the steps involved and the requirements you need to meet. This article will provide an in-depth guide on how to file for bankruptcy in Illinois.

Types of Bankruptcy

Chapter 7 Bankruptcy: Chapter 7 bankruptcy, also known as liquidation bankruptcy, is the most common type of bankruptcy filed by individuals. It involves the liquidation of non-exempt assets to repay creditors. To qualify for Chapter 7 bankruptcy in Illinois, you must pass the means test, which compares your income to the state median income.

Chapter 13 Bankruptcy: Chapter 13 bankruptcy, also known as reorganization bankruptcy, allows individuals with a regular income to create a repayment plan to pay off their debts over a period of three to five years. This type of bankruptcy is suitable for those who want to keep their assets and catch up on missed payments. To qualify for Chapter 13 bankruptcy, you must have a stable income and your secured and unsecured debts must fall within certain limits.

Filing for Bankruptcy

Pre-Bankruptcy Credit Counseling: Before filing for bankruptcy, you are required to complete a credit counseling course from an approved agency. This course aims to provide you with information and tools to evaluate your financial situation and explore alternatives to bankruptcy.

Complete Bankruptcy Forms: To initiate the bankruptcy process, you need to complete various forms, including the petition, schedules, and statements. These forms require detailed information about your income, expenses, assets, debts, and financial history. It is crucial to provide accurate and complete information to avoid potential legal issues.

Filing Fee: When filing for bankruptcy in Illinois, you are required to pay a filing fee. If you cannot afford the fee, you may be eligible for a fee waiver or installment payments. It is important to check the current fee amount and payment options on the official website of the U.S. Bankruptcy Court for the Northern District of Illinois.

Automatic Stay: Once your bankruptcy petition is filed, an automatic stay goes into effect, which prohibits creditors from taking any collection actions against you. This includes foreclosure, wage garnishment, and harassing phone calls. The automatic stay provides immediate relief and gives you a chance to reorganize your finances.

Meeting of Creditors

After filing for bankruptcy, you will be required to attend a meeting of creditors, also known as a 341 meeting. This meeting is conducted by the bankruptcy trustee assigned to your case and provides an opportunity for creditors to ask questions about your financial situation. It is important to be prepared and provide honest and accurate answers.

Financial Management Course

Before receiving a discharge of your debts, you must complete a financial management course from an approved agency. This course aims to educate you on budgeting, money management, and financial planning to help you avoid future financial difficulties.


Filing for bankruptcy in Illinois can be a complex process, but with the right guidance and understanding, it can provide individuals and businesses with a fresh start. It is important to carefully consider the type of bankruptcy that suits your needs and to follow the necessary steps, including pre-bankruptcy credit counseling, completing bankruptcy forms, attending the meeting of creditors, and completing a financial management course. By following these steps and meeting the requirements, you can navigate the bankruptcy process successfully and regain control of your financial future.


– United States Courts: Bankruptcy Basics –
– U.S. Bankruptcy Court for the Northern District of Illinois –
– Legal Aid Chicago: Bankruptcy –