Filing Bankruptcy in Illinois: A Comprehensive Guide to A Fresh Start!
Navigating Bankruptcy: Essential Basics for a Fresh Financial Start in Illinois
Filing bankruptcy in Illinois
Filing bankruptcy in Illinois will immediately stop all harassing telephone calls, lawsuits, wage garnishment, repossessions, and foreclosures. Filing chapter 7 or chapter 13 bankruptcy stops the sleepless nights trying to decide how to make ends meet.
Nobody plans to get into debt so they can file bankruptcy. Bankruptcy is simply a safety valve, so that people who cannot pay their debts on time without undue hardship can get a fresh start and begin to rebuild their lives. This year over 1 million people will file bankruptcy, shed their debt and start fresh!
The bankruptcy code is divided into sections call chapters. The most common chapters are chapters 7 and Chapter 13. Generally, under Chapter 7, you’re able to keep all of your possessions, including your house and cars, provided they are insured and you are current on your payments. Chapter 13 is available for people with steady incomes and is particularly useful for those who are behind on their mortgage payments that want to save their house or who don’t qualify for Chapter 7. The major difference between Chapter 13 and Chapter 7 is that under Chapter 13 you are responsible for making some payments to your creditors, while under Chapter 7 you do not make any further payments to any of your creditors (except of course house and car payments).
Important Bankruptcy Code Sections
When filing for Chapter 7 bankruptcy in Illinois, it is important to understand the relevant legal provisions and procedures. Here is an overview of the process, along with relevant bankruptcy code citations where applicable:
Automatic Stay: When you file for Chapter 7 bankruptcy, an automatic stay is put in place, which prevents creditors from contacting you or pursuing debt collection actions against you. This is governed by Section 362 of the Bankruptcy Code.
Trustee Appointment and 341 Meeting: After filing for Chapter 7 bankruptcy, a trustee will be appointed to review your case. The trustee will conduct a meeting known as the 341 meeting or the first meeting of creditors. During this meeting, the trustee may question you about your debts and assets. The requirements for the trustee's role and the 341 meeting are outlined in Section 341 of the Bankruptcy Code.
Dischargeable Debts: Chapter 7 bankruptcy allows for the discharge of most debts. However, certain debts are considered nondischargeable under Section 523 of the Bankruptcy Code. Examples of nondischargeable debts include most taxes, alimony, child support, and student loans.
Financial Management Course: To receive a discharge in Chapter 7 bankruptcy, you must complete a financial management course. This requirement is stipulated in Section 727(a)(11) of the Bankruptcy Code.
Reaffirmation Agreements: In some cases, a creditor may request a reaffirmation agreement. By signing this agreement, you are promising to repay a debt that would otherwise be discharged in your bankruptcy case. Reaffirmation agreements are typically used for assets such as houses and cars that you wish to keep. The guidelines for reaffirmation agreements can be found in Section 524 of the Bankruptcy Code.
Means Test: To qualify for Chapter 7 bankruptcy in Illinois, you must pass a means test. This test evaluates your monthly income, household size, and expenses to determine your eligibility. The means test requirements are outlined in Section 707(b) of the Bankruptcy Code.
Remember, filing bankruptcy in Illinois is not the failure but rather a fresh start and will give you greater control over your finances.
How We Can Help You File Bankruptcy
There are two main types of bankruptcy: Chapter 7 bankruptcy, which is a liquidation plan, and Chapter 13 bankruptcy, which offers a repayment plan.
We hope to be a source of valuable information. Illinois bankruptcy attorney Bradley Covey and his staff at Covey Bankruptcy Law understand bankruptcy can be complicated and confusing; therefore, we have tried to provide you information in a format that is easy to understand.
Filing bankruptcy is one of the last things anyone wants to do. However, we understand that in life, bad things often happen to good people. We hear on the news every night about the economic difficulties all Americans are facing. Unfortunately, Aurora, IL and Elgin, IL and their surrounding areas are no different. During today’s difficult economic times we hear about people losing their jobs, being overwhelmed by medical bills, having their homes foreclosed upon and being drowned in credit card debt.
Covey Bankruptcy Law Firm’s Assurance to You
If you are looking for an Illinois bankruptcy attorney then you have undoubtedly faced these or similar obstacles. Now is when you need someone who is dedicated to your case. Attorney Brad Covey has been filing bankruptcies for those facing tough financial times in the Kane, DuPage, Kendall, and Will County areas since 1992. Since opening law offices in Aurora, Elgin, Batavia, Plainfield and Wheaton, Illinois, we have been dedicated to helping those who are having financial difficulty. Covey Law has filed thousands of bankruptcies all across northern Illinois. Because of our successful filings, Covey Law attorneys appear in the United States Bankruptcy Court several times each week. We have the experience, knowledge and skill to help you during these tough times.
Why Have 1,000s of People Like You Have Chosen Covey Bankruptcy Law Firm, P.C.?
Reason #1: Free Initial Consultation: When you contact our office, we will schedule a free initial consultation so that attorney Brad Covey can personally listen to your situation and let you know your bankruptcy options. It is completely free – all it takes is for you to request your free consultation. We offer evening, weekend and early appointments to accommodate your busy schedule.
Reason #2: We Stop Creditor Phone Calls and Harassment: One of the biggest reasons that people file bankruptcy is to stop creditors from calling and harassing you at all hours of the day and night. By retaining attorney Brad Covey and filing bankruptcy, we can stop creditor phone calls and harassment.
Reason #3: Experienced at Filing Bankruptcies: Attorney Brad Covey has filed thousands of bankruptcies and most of these are due to client referrals. We get positive reviews and referrals from our current and former clients because we have the experience to handle their situation, and the staff at Covey Bankruptcy Law Firm treat our clients with respect and compassion.
Reason #4: We Care About You and Your Family: At Covey Bankruptcy Law Firm we refer to you by your name, not a case number. We know that financial difficulties don’t just affect you; they also affect your family. Debt can affect you and your family in almost every area of your life. You deserve a bankruptcy law firm that truly cares about the financial future of you and your family. Covey Bankruptcy Law Firm is that law firm, and Brad Covey and his staff can provide you and your family with the personal service you deserve. Our family is here to help your family.
We have built our reputation on these four core values. Covey Bankruptcy Law Firm hopes to help you during these tough times.
We offer a Free Consultation. Call Today for a Fresh Start 630-879-9559.