Glanzer & Associates, P.C. Articles Who is a debtor in an Illinois bankruptcy case?

Who is a debtor in an Illinois bankruptcy case?

By Glanzer & Associates, P.C.  Apr. 3, 2013 9:08a

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.

Other Recent Articles

Medical Bills Will Push Many Households into Bankruptcy

NBC Business News reported last month that soaring medical costs is a top factor in why many individuals and families in the U.S. seek bankruptcy protection.
More Articles »

Lien Stripping Through a Chapter 13 Bankruptcy

Lien stripping is the process by which a second mortgage may be eliminated for certain homeowners through the Chapter 13 bankruptcy process.
More Articles »

Repeat Bankruptcy Filers Increasing

In a report published by the Albuquerque Journal, Americans filing for personal bankruptcies in the past few years are doing so with less debt and less assets.
More Articles »
(312) 544-0365
101 W. Grand Avenue, Suite 200 Suite 200
Chicago, IL 60654

Office Hours:
Mon-Fri 9 AM-5 PM

Main Website:
View Website
Contact our office by email or phone instantly by clicking the options below: