Illinois Bankruptcy Guide

Notice 1 Notice 1

Current Illinois bankruptcy laws allow full & final discharge of debts in Chapter 7. Chapter 13 combines past due amounts into one monthly payment, at reduced interest, for up to five years. Additionally, partial payments are available which discharge remaining balances at the end of the plan term. The maximum payment in Chapter 13 is determined based on net income after paying living expenses. In ether chapter, all Illinois bankruptcy cases are subject to court review. Also be aware that Illinois bankruptcy courts may set a hearing if an objection is filed by a trustee, creditor, party in interest, or upon their motion. After all objections are resolved to the satisfaction of the court, discharge of debts or confirmation of the plan is mandatory. Conversely, if objections are not resolved, cases are usually dismissed. Most often, the success of each case is determined by careful planning before selecting chapter, options and filing date.

The largest rate of filing increase for Illinois bankruptcy cases during 2011 occurred in the Northern District (Chicago and Rockford Divisions), followed closely by the Central District (Springfield, Peoria, and Danville Divisions). The Southern District (East St. Louis, Benton, and Effington Division) approximated the national average. Chapter 7 and Chapter 13 cases for individuals accounted for over 99% of all Illinois bankruptcy filings in 2011.

Illinois Bankruptcy District Total Filings:

Year Northern Central Southern Total
2011 53,662 14,835 8,845 77,342
2012 60,820 16,493 9,574 86,887
Change +13.3% +11.2% +8.2% +12.3%