Illinois Bankruptcy Definitions & Tips:

A few of the more common words and phrases used by the Illinois bankruptcy courts are included in following list. Be aware of variations between common usage, as compared to legal definitions derived from statutes, case interpretations, and local customs.

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.

New privacy rules went into effect December 1, 2003 for all Illinois bankruptcy courts. Previously, the social security number for each debtor was made publicly available through the clerk's office in all cases. The new rule now requires only the last four digits to be made publicly available because of the rise in identity theft. Concerns regarding inclusion of the names and ages of minor children within schedules remain hotly debated. The Illinois Bankruptcy Court for the Northern District issued a standing order on February 17, 2004 because of the dischargeability of attorney fees. In a case under Chapter 7 of the Code, where the debtor's attorney agreed to represent the debtor upon the condition of a later written agreement to pay attorney fees after filing, the Court will now allow an attorney to withdraw if the debtor refuses to sign the agreement.

Back to Illinois Bankruptcy Court topics.