Illinois Bankruptcy Laws - Legal Assistance

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.

Operation of Illinois bankruptcy laws

In practice, the best time to oppose forfeiture or levy is before a motion to lift stay is filed with the Illinois bankruptcy court. Once the stay is lifted, state law provides a lesser standard for protection of a debtor's interest. For additional information consider one of the most complete sources of information for Illinois bankruptcy law, which is available without charge: Illinois State Bar Association.

• If you have legal questions, consult qualified bankruptcy attorneys. IL bankruptcy law is unique relying on state statues pertaining to homestead, property ownership, collection & foreclosure procedures.
• Qualified IL bankruptcy lawyers should be familiar with exemptions set forth in state statutes applicable to  bankruptcy Chapter 7, IL bankruptcy courts, local rules, and court decisions.
• IL Chapter 7 bankruptcy law limits the value of assets that may be retained.
• Dischargablity in Chapter 7 is determined by federal statutes and IL bankruptcy attorneys must be licensed in federal court to represent clients on a regular basis.
• IL Chapter 13 bankruptcy laws may apply when seeking confirmation of a partial plan. Full plans are also available under bankruptcy Chapter 13. IL bankruptcy courts routinely confirm both types of plans.
• Creditors are typically represented by bankruptcy lawyers. IL nevertheless allow debtors to represent themselves dealing with creditors, their lawyers, and the courts. Although pro se debtors do not have legal counsel, they must nevertheless comply with all provisions of Illinois bankruptcy law.

Regarding Chicago bankruptcy lawyers:

• When selecting bankruptcy attorneys, Chicago bankruptcy attorneys may be located by calling your county bar association for referrals.
• All Chicago bankruptcy lawyers are subject to fee guidelines as determined by the Chicago bankruptcy court and Illinois bankruptcy law.
• When paying a fee for bankruptcy, Chicago lawyers are allowed similar rate guidelines as used by the court in other major metropolitan areas paid to lawyers.
• Chicago bankruptcy lawyers also use similar forms, but local courts may require supplemental local forms to comply with local rules and Illinois bankruptcy law.
• All bankruptcy lawyers, Chicago, are required to disclose fees charged in accordance with federal and Illinois bankruptcy law.

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