Chicago Bankruptcy Lawyers

Chicago Bankruptcy Spotlight

Rough Times in The Windy City

The Chicago Tribune’s “Recession Survival Guide” section is another reminder of tough times in Chicago.  Continuing lay-offs and cutbacks are strapping residents who struggle to keep up with heavy debt burdens.  U.S. bankruptcy filings in 2008 hit record levels with over 56,000 in Illinois alone, and over 97% of those filed by consumers.    It is estimated that 1.4 million consumer bankruptcies will be filed in the U.S. in 2009, the surge triggered by the foreclosure crisis and economic downturn.

Bankruptcy in Chicago – the Process

The Federal Bankruptcy Law involves processes, procedures and evaluations which can be complex and confusing, including major revisions made in 2005.  Seek the advice of an attorney/law firm with specific long-term experience in Chicago bankruptcy matters.  Check references, if possible.  A competent attorney will help you weigh your different options, make informed decisions, help you protect the security of your family and reduce your stress, while facing the realities of the situation.

Filing a Chapter 13 Bankruptcy in Chicago

Generally, all consumers considering bankruptcy in Chicago will file either a Chapter 7 (liquidation) or Chapter 13 bankruptcy.  Chapter 13 provides for your creditors to be paid back all or a portion of the debt owed, over a period of three to five years.  Chapter 13 is often used in Chicago to prevent a foreclosure of a home or repossession of a car.  Chicago filers who do not pass the Chapter 7 “means test” will be required to file Chapter 13 or remove themselves from the bankruptcy process entirely.

Major Changes Made in 2005 Will Impact your Chicago Bankruptcy

Because of bankruptcy filing abuses, the law was changed in 2005 to include the following:

• Required pre-bankruptcy counseling
• Strict guidelines to qualify for a Chapter 7 filing (liquidation proceeding) including a “Means Test” to determine your ability to pay debts
• Tight restrictions on repeat filers
• Random audits to verify accuracy of bankruptcy filing
• Enhanced oversight for Chapter 11 (reorganization) small business cases

• If you are at risk of filing for bankruptcy or already in the process, Submit Your Case for a Free Review from a Bankruptcy Attorney in Chicago, IL.

Exemptions – Which Property is Exempt in Chicago?

Certain property, or values of property, is exempt from being included in the debtor’s estate and these exemptions vary from state to state.  Some states have their own set of exemptions which replace the federal list, and other states allow you to choose between the state or federal list of exemptions.  The exemptions, which change frequently, vary widely from jurisdiction to jurisdiction and understanding your options is a very important aspect of evaluating your position.

Do Your Homework Related to Your Bankruptcy Filing in Chicago

Chicago residents continue to suffer, as the State’s economy struggles to recover.  If you are considering filing for bankruptcy, decisions you make and actions you take now can have a positive or negative effect on the outcome of your bankruptcy proceedings.  The U.S. Bankruptcy Court warns that “Bankruptcy has long-term financial and legal consequences - hiring a competent attorney is strongly recommended.”    Click here to find Chicago attorney resources in your area.