Illinois Chapter 13 Confirmation

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"Illinois Chapter 13 Confirmation"

Before an Illinois bankruptcy plan of reorganization becomes effective, the court must approve, or "confirm" the plan after notice and hearing. Absent confirmation, cases are either dismissed or converted to Chapter 7.

11 U.S.C. §1325(a) provides, in part, "Except as provided in subsection (b), the court shall confirm a plan if - (1) The plan complies with the provisions of this chapter and with the other applicable provisions of this title; (2) any fee, charge, or amount required under chapter 123 of title 28, or by the plan, to be paid before confirmation, has been paid; (3) the plan has been proposed in good faith and not by any means forbidden by law; (4) the value, as of the effective date of the plan, of property to be distributed under the plan on account of each allowed unsecured claim is not less than the amount that would be paid on such claim if the estate of the debtor were liquidated under chapter 7 of this title on such date." A majority of the secured creditors in an Illinois bankruptcy proceeding under Chapter 13 must also approve the plan.

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.