FAQ: How To File Bankruptcy In Illinois?

How long is the bankruptcy process in Illinois?

The usual bankruptcy takes about two weeks to prepare (emergency cases can be prepared and filed in as little as a day). Chapter 13 bankruptcy to restructure your debts: Generally takes between 36 and 60 months to complete your case and receive your discharge.

What will I lose if I file bankruptcy?

If you file for bankruptcy under Chapter 13, you will get to keep all of your property, whether it’s exempt or not. In Chapter 13, you must propose a repayment plan to pay off some or all of your debt.

Can I file bankruptcy without going to court?

In most cases, no you will not have to attend at bankruptcy court if you file personal bankruptcy. no creditor opposes your bankruptcy discharge; the trustee does not oppose your discharge for failure to comply with your requirements or because you did not make all your required bankruptcy payments.

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What is the income cut off for Chapter 7?

If your annual income, as calculated on line 12b, is less than $84,952, you may qualify to file Chapter 7 bankruptcy. If it’s greater than $84,952, you’ll have to continue to Form 122A-2, which we’ll review in the next section.

Can I keep my car if I file Chapter 7 in Illinois?

If you file Chapter 7 and you own a vehicle outright, you can keep the car if it is worth $6,400 or less by using your Illinois motor vehicle and personal property exemptions. You also can use “redemption” to keep your vehicle. Redemption requires you to pay the fair market value of the vehicle in full.

How long can you stay in your house after filing Chapter 7?

If you’ve gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan. Government-backed mortgage loans are a bit more lenient. You need to wait 3 years after your bankruptcy’s dismissal or discharge to get a USDA loan.

How can you file for bankruptcy without any money?

If your household income is less than 150% of the federal poverty level, you can ask the bankruptcy judge to waive your court fees with a simple application submitted along with your bankruptcy petition. Plus, you’ll be eligible to ask for a fee waiver for the credit counseling and financial management courses.

What’s the difference between Chapter 7 and Chapter 13 bankruptcy?

With Chapter 7, those types of debts are wiped out with your filing’s court approval, which can take a few months. Under Chapter 13, you need to continue making payments on those balances throughout your court-instructed repayment plan; afterwards, the unsecured debts may be discharged.

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What happens to my bank account when I file Chapter 7?

In most Chapter 7 bankruptcy cases, nothing happens to the filer’s bank account. As long as the money in your account is protected by an exemption, your bankruptcy filing won’t affect it.

Do you get out of all debts if you declare bankruptcy?

In both cases, the bankruptcy court can discharge certain debts. Once a debt has been discharged, the creditor can no longer take action against the debtor, such as attempting to collect the debt or seize any collateral. Not all debts can be discharged, however, and some are very difficult to get discharged.

Can I keep my car if I file bankruptcy?

If you file for Chapter 7 bankruptcy and local bankruptcy laws allow you to exempt all of the equity you have in your car, you can keep the vehicle— as long as you’re current on your loan payments. They may also give you the option to pay off the equity at a discount in order to keep the car.

What debts are not erased in bankruptcy?

These debts include: spousal support (alimony) and child support payments. student loans if you have been a part time or full time student within the last 7 years (please note, under certain conditions the court can reduce this to 5 years)

Is it better to file a Chapter 7 or 13?

For many debtors, Chapter 7 bankruptcy is a better option than Chapter 13 bankruptcy. For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don’t pay creditors through a three- to five-year Chapter 13 repayment plan.

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Will I lose my house if I declare bankruptcy?

You worry that you may lose your home. You can file bankruptcy even if there is equity in your home. If you owe more money to your creditors than the value of what you own you are considered insolvent. With up-to-date mortgage payments filing for bankruptcy does not mean you will automatically lose your house.

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