Bankruptcy

We realize that these are stressful times in your life…

 

At Castle Law, we understand that these are difficult, stressful decisions to make, both personally and, in some instances, in your business life as well. Rest assured that we are committed to expeditiously, professionally, and legally navigating you through the bankruptcy process with your absolute best interest in mind. Our goal is to help you move forward with peace of mind.

Consumer Bankruptcy in Illinois

In Illinois, consumer bankruptcy follows the federal guidelines outlined in the U.S. Bankruptcy Code. Filing for bankruptcy in Illinois involves several steps and considerations, and it's recommended that you consult with a bankruptcy attorney who is experienced in Bankruptcy Law and can discuss the specifics of your bankruptcy filing with you. 

 Here is an overview of the two (2) different types of consumer bankruptcy:

1.       Chapter 7 Bankruptcy – This type of bankruptcy involves the liquidation of assets to pay off debts. Certain assets may be exempt from liquidation under Illinois law.

2.       Chapter 13 Bankruptcy – This form of bankruptcy involves setting up a repayment plan to pay off debts over a period of three to five years. It allows individuals to keep their assets while repaying creditors according to the plan.

Illinois Bankruptcy Exemption

Illinois has a set of exemptions that determine what property you can keep when filing for bankruptcy. Some of these exemptions include:

·         Homestead Exemption – Protects equity in your primary residence.

·         Personal Property Exemptions – Covers items like household goods, clothing, (some) equity in a motor vehicle, etc.

·         Retirement Account Exemptions – Certain retirement accounts may be protected.

The Filing Process

1.       Credit Counseling. Before filing for bankruptcy protection, you'll need to attend credit counseling from an approved agency within 180 days of filing. There may be options to attend this credit counseling online.

2.       Filing the Petition. This involves submitting various forms, financial information, and documentation to the bankruptcy court in Illinois.

3.       Automatic Stay. Upon filing, an automatic stay goes into effect, halting most creditors' actions, such as collection calls or foreclosure proceedings.

4.       Meeting of Creditors. You'll attend a meeting where you, the trustee, and your creditors can discuss the case. It is in this meeting that creditors may directly ask you questions about your finances. (Don't worry, we'll be in this meeting as well.)

5.       Discharge. If approved, a discharge releases you from personal liability for certain debts and prevents creditors from taking further action to collect those debts.

 

Put the Castle in Your Corner for All Your Legal Needs

Consumer bankruptcy in Illinois follows federal guidelines but also incorporates state-specific exemptions. It's essential to understand the different types of bankruptcy options that are available, the exemptions you may qualify for, and the procedural requirements for filing. Consulting with a bankruptcy attorney will provide personalized guidance for your situation and help you navigate the complexities of the bankruptcy process.

While it's possible to file for bankruptcy without an attorney, seeking legal counsel is highly recommended. Bankruptcy laws and procedures vary by state, and the specific type of bankruptcy filed depends on the debtor's situation, the nature of their debts, and their goals for resolving the financial challenges they face. At Castle Law, our experienced bankruptcy attorneys can guide you through the process, ensure all necessary paperwork is filed correctly, represent you during meetings, and advise you, our client, on the course of action that is in your best interest.