Illinois Bankruptcy Courts

The Illinois Bankruptcy System is divided into three federal districts. Each of these districts are subdivided into divisions which serve specific counties. For division specific information, see:

• Northern District
• Central District
• Southern District

According to the Administrative Office of the U.S. Courts, the 2003 national rate of filing personal bankruptcy was one in every 79.1 households (1.27%). At this rate, over the next 30 years, 38% of all U.S. households will be liquidated by the federal court system. In Illinois, the rate is one in every 62.6 households which ranks 9th in the country.

New bankruptcy laws are expected to limit the availability of federal debt relief for all consumers. Discharge through Ch. 7 will become more difficult, and available only to those earning less than the state median income level. Ch. 13 payments will be higher, with lower living allowances. Governor Rod Blagojevich is expected to oppose these proposed amendments.

Illinois Bankruptcy Practices - Local Rules

Each Division maintains Illinois bankruptcy local rules of court. Many local rules are standardized across the county and provide further clarification and instructions for administrative responsibilities of attorneys. For instance, instructions on filing additional declarations and required data are not included within the U.S. Bankruptcy Code, but are however routinely published by the Clerk of the Court along with Illinois bankruptcy records. Local rules also may include unique location specific instructions applicable only to a particular district or division. All debtors filing pro se must also follow local rules regardless of actual notice. A violation of local rules may result in dismissal. Copies of local rules are available from the Clerk of the Court for each Illinois Bankruptcy Division. Courts may also offer a glossary of Illinois bankruptcy terms that provide definitions of common words and phrases.