Who is a debtor in an Illinois bankruptcy case?

Under bankruptcy laws, debtors are those who reside in, own a home, business, or property in the state in which they intend to file a bankruptcy petition. Depending on one's situation, including whether you are a homeowner or business owner, you must file bankruptcy under the chapter for which you qualify. Chapter 7 is the most common type of personal bankruptcy, which is a liquidation bankruptcy and the easiest and fastest to process. You must, however, be eligible to file for this type of bankruptcy; eligibility depends on whether or not your income is at or below the state's median income for your household size. Those whose incomes exceed this median may still qualify under a means test which calculates your disposable monthly income after expenses. For individuals who fail to qualify for a Chapter 7, a Chapter 13 filing, which is a repayment plan, may be pursued.

Those who file for a Chapter 7 bankruptcy must receive credit counseling before they can file. They also must complete additional counseling about financial management and budgeting before their case can be completed and their debts discharged. Only individuals are eligible for a discharge of their debts under a Chapter 7, not partnerships or corporations. In Illinois, three bankruptcy court districts exist, Northern, Central, and Southern. You must file in the district in which you live. The main bankruptcy courts for the Northern District are in Chicago. You must have been a resident in the state for at least 90 days before you can file.

Chicago Bankruptcy Attorney

Deciding to file for bankruptcy is a major step and a process you should undertake with the help of a skilled attorney. By doing so, you ensure that your filing is done properly and thoroughly, which can prevent complications and / or legal problems. At Glanzer & Associates, P.C. you can work with an attorney dedicated to bankruptcy and debt relief who can advise you on all that you need to know, from bankruptcy alternatives to how bankruptcy will affect your divorce, a foreclosure, property exemptions, and more. Without proper legal guidance, your bankruptcy case could lead to a loss of property or an incomplete discharge of your unsecured debt.

Find out if bankruptcy is right for you and, if so, what type of filing best suits your needs. Contact the firm to arrange for a free bankruptcy evaluation with Mr. Glanzer so that you can make the right decisions about your financial future.