Illinois Bankruptcy

Bankruptcy is a federal process for debt relief and allows the fair treatment of creditors through legal oversight. In Illinois bankruptcy cases are heard in the federal courts, but state law determines what property individuals can protect. As an opt-out state, individuals are required to use the exemptions set out by the state instead of the federal exemption list.

Furthermore, the chapter you file under determines whether debts are discharged or reorganized. Illinois exemption rules determine what assets are protected from creditors.

How to File Bankruptcy in Illinois

A structured approach ensures your case progresses from the filing stage to discharge. It is essential to take a credit counseling course before filing for bankruptcy. This is available with an approved provider and takes 180 days. You are required to submit financial documents such as tax returns, income records, bank statements, debt lists, real estate deeds, and vehicle titles.

In addition, you are required to file under chapter (7, 13, or 11) and apply Illinois-specific exemptions. Individuals may submit bankruptcy petitions and required schedules to the appropriate district court. While most self-represented individuals are required to follow the clerk’s instructions, attorneys may file bankruptcy cases electronically.

A filing fee is often required when filing bankruptcy cases. You may request installments or a fee waiver if eligible under Chapter 7 cases. You may meet with the trustees to verify your identity, asset values, and income. A debtor education course is typically necessary after filing, and you are required to respond promptly to all trustee and court communications.

Illinois Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

Chapter 7 (Liquidation)

This is suitable for individuals with low income and few non-exempt assets. To repay creditors, a court-appointed trustee may sell non-exempt properties. Illinois exemptions protect certain assets, including a portion of home equity and personal property.

Chapter 13 (Repayment Plan)

This is designed for individuals with a regular income. A 3- to 5-year repayment plan may be mapped out for individuals with regular income to cover debts. This stops foreclosure and helps repay mortgage arrears. The required payment plan reflects any non-exempt equity based on Illinois exemption levels.

Chapter 11 (Reorganization)

This is primarily for businesses and individuals with substantial debt. It allows debt restructuring while continuing operations under court supervision.

Step-by-Step Checklist for Illinois Filers

Individuals filing for bankruptcy cases may navigate the process by taking these steps:

• Complete credit counseling course
• Collect tax, income, debt, and asset documentation
• Choose Chapter 7, 13, or 11
• Apply Illinois exemption rules
• File petition and schedules
• Pay filing fee or request relief
• Attend 341 meeting
• Complete debtor education course
• Await discharge or repayment plan confirmation

Illinois Bankruptcy Courts & Record Access

Illinois has three federal bankruptcy district courts. Residents may visit any of the locations based on their county of residence:

Court Location

• The Northern District has locations in Chicago, Rockford, Joliet, and surrounding locations. The address of the U.S. bankruptcy court in the Northern District is located at:

• The Central District of Illinois bankruptcy court has divisions in Springfield, Peoria, and Urbana. The addresses for each division within the Central District are:

Springfield Division

Peoria Division

Urbana Division

The U.S. District Court for the Southern District of Illinois serves East St. Louis and Benton, and the courthouse is located at:

Record Access

Case dockets and information are available online via the federal online platform, Public Access to Court Records (PACER). Individuals may also find records via the Multi-Court Voice Case Information System (McVCIS), as this is a voice-automated phone system that connects users to live court databases to provide case information. For in-person certified copies, the clerk’s office is available to assist.