Illinois Bankruptcy Reorganization

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Information About Illinois Bankruptcy Courts, Laws & Lawyers With Legal Summaries For Debtors

Avoid Mistakes When Planning and Filing Illinois Bankruptcy Cases

The best-planned bankruptcy cases go unnoticed. A few debtors glide through the system without attracting attention and receive full discharges in record time. Luck is not involved, but rather each successful debtor begins planning strategically a few weeks or months in advance. These debtors know something that you don’t.

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"Illinois Bankruptcy Reorganization"

Plans proposed in Illinois bankruptcy cases under Chapter 11, 12, and 13 may, and usually do, alter payment terms for debts. Reorganization refers to discounting interest payments, extending payment terms, rejecting contingent claims, and avoiding particular debts. A Chapter 13 plan may reorganize debts, for a period of payment of not more than 5 years, and may provide as little as 10% repayment of principal owed. All three types of reorganization available through Illinois bankruptcy courts require the submission of a plan.

11 U.S.C. §1123(a) provides, in part, "Contents of plan. (a) Notwithstanding any otherwise applicable nonbankruptcy law, a plan shall - (1) designate, subject to section 1122 of this title, classes of claims, other than claims of a kind specified in section 507(a)(1), 507(a)(2), or 507(a)(8) of this title, and classes of interests; (2) specify any class of claims or interests that is not impaired under the plan; (3) specify the treatment of any class of claims or interests that is impaired under the plan; (4) provide the same treatment for each claim or interest of a particular class, unless the holder of a particular claim or interest agrees to a less favorable treatment of such particular claim or interest; (5) provide adequate means for the plan's implementation, such as - "

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.

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Information for consumer debtors filing Chapter 7 or Chapter 13 in Aurora, Chicago, Cicero, Elgin, Joliet, Naperville, Peoria, Rockford, Springfield, and Waukegan. State and county bar referral information included, plus legal summaries of state and federal law requirements, lawyer directory, law firm and attorney fee guidelines, and court contact information. Illinois Bankruptcy Laws, Courts & Lawyers | ©Copyright 1997 through 2010 - All Rights Reserved.