Filing Bankruptcy in Chicago, Illinois

Collect Your Chicago Bankruptcy Documents

Before you file your Chicago bankruptcy, you need to get together the financial documents you will need. The types of financial material you will collect are related to your income, debts, and assets. Income is money you make or earn, debt is money that you owe, and assets are the property you own. You can start by printing your credit report, which you can get online for free. The information on your credit report will give you a glimpse into the creditors you need to list in your bankruptcy. Look over it, and make a list of anyone not listed, such as court judgments or personal loans from family and friends. It may seem like a good idea to leave them off, but the Court requires you to be forthright about your finances to file bankruptcy successfully. You will gather six months of pay stubs, your W-2s, and the most recent two years of your taxes. You may not have these on at your fingertips, but a quick call to your current or former employer can get you your pay stubs and W-2s. Checking with your tax preparer or an online request to the IRS will get the taxes you need. Get statements from your bank, investment, and retirement accounts. Statements are usually available online or a local branch. You will also need your vehicle registration and valuations for the property you own. It is also essential to have your photo identification and social security card. It may seem like a pain getting these documents but getting them now will help you every step of the way.

Take Credit Counseling

Before you can file your Chicago bankruptcy, you take credit counseling to learn your options and alternatives. You will go through the exercise of creating a budget and evaluate how you spend money and whether repayment is doable. Do not take the course personally even if it’s information you already know. Plus, many people feel like it makes assumptions about how you incurred debt by making it out to be your fault, which is a common misconception. If you feel like the information borders on insulting, you are not the only one who feels this way. The course is a requirement, so take what you can out of it to get your certificate. Many Chicagoans decided bankruptcy was their best option after using the tools in this course.

This one hour approved credit counseling course can be completed in person, online or by telephone in English and Spanish. The course is also available online in other languages. It costs $10-$50 dollars, but if you fall below 150% below the poverty line, you may qualify to take the class for free. After you finish the course, you will receive your certificate of completion. You will submit the certificate to the Court when filing bankruptcy in Chicago. The certificate is valid for six months. 

Complete the Bankruptcy Forms

Your bankruptcy forms can be a daunting task to complete. Some Chicagoans use bankruptcy software to complete the paperwork consistently for their Chicago bankruptcy. If you don’t use bankruptcy software, you can use Adobe to type in your answers. On your Voluntary Petition for Individual Debtor, you should complete the boxes and mark "Pro Se" meaning you don’t have a lawyer. Leave the boxes for the petitioner preparer blank. Complete Schedules with the items you own owe and what you make. It’s a mistake to list nothing as you have clothes, shoes, and jewelry and if you leave that information off your schedules, your Trustee may wonder what else you’re hiding. The forms get pretty specific and even ask that you list your pet Bently from PAWS. 

You can find all the forms you need here and on the Illinois Bankruptcy Court's Website. The Court also has a Creditor Matrix Program to help you electronically submit your list of creditors. This electronic program is helpful to create and provide your list of creditors, and later you can update it electronically if needed.

Get Your Filing Fee

To file your bankruptcy, you must satisfy the filing fee. It costs $338 to file a Chapter 7 bankruptcy in Chicago and $313 to file Chapter 13 bankruptcy. The Court accepts cash, cashier's check, certified check, or money order. You must settle your filing fee to avoid having your case dismissed. If you can't afford to pay the whole Chapter 7 fee at the time you decide to file, you can apply to pay the fee in installments. The Court will let you pay up to four smaller amounts after filing bankruptcy in Chicago until you have paid the $338 fee. If you can’t afford to pay the fee and your income falls 150% or more below the poverty line you can apply for a fee waiver. Submit your fee waiver with your bankruptcy filing. If your fee waiver is denied, you can pay your fee in installments. If your installment payment is granted, you will have 120 days to complete your four payments. 

Print Your Bankruptcy Forms

Be sure to print your bankruptcy forms one-sided as required with documents that will be submitted to the Court. Your Chicago bankruptcy filing will be more than 70 pages with attachments. If you can’t print at home, you can print at the Chicago Public Library locations for $0.10 a page. Most Chicagoans review their bankruptcy filing carefully after printing and sign each designated space. It's recommended that you make at least one copy of everything you are submitting to the Court. The Clerk will stamp your copies, so you have a copy of your complete bankruptcy filing. If you don’t print yourself a copy and you ever need one, the Clerk will copy it at a much more expensive rate of $0.50 a page. 

Go to Court to File Your Forms.

You will file your Chapter 7 bankruptcy in Chicago in the Eastern Division of the Illinois Bankruptcy Court for the Northern District. The Chicago Bankruptcy Court is located at 219 South Dearborn, Chicago, IL 60604, in the Dirksen Federal Building. There is metered parking and parking lots nearby, but they are costly. You can use an app such as ParkWhiz to find parking, but the courthouse is also easily accessible by train. Both the Blue and Redline train travel close to the courthouse. 

When you get to Court, you will need to pass through security and a metal detector. Go to the Clerk's office in Room 713. To file your bankruptcy, you should have your bankruptcy forms, including your Certificate of Approved Credit Counseling. You should also have your filing fee or either your Application to Pay Fee in Installments or Application for Waiver of Fee. Filing bankruptcy in Chicago in person allows you to have the Clerk review your forms for completeness. Once you file, the Court will provide you your case number, your Trustee’s information, and the date for your 341 Meeting. The hard work is done.

Mail Documents to Your Trustee

Your Trustee manages your Chapter 7 bankruptcy in Chicago. The Trustee will review your bankruptcy case and determine whether there are assets to repay your creditors. The Trustee only has about a month from your bankruptcy filing to review your case before the Chapter 7 Meeting of the Creditors. At least seven days before your 341 Meeting you should send the Trustee your most recent tax returns, and pay stubs from the 60 days before your Chicago bankruptcy was filed.

The Court sends notice to your creditors that you are filing bankruptcy in Chicago. The notice allows your creditor to object, but rarely do objections happen. To lock in your bankruptcy's success, you want the Creditor to have notice. If you get a non-deliverable Form 309A, it means one of your creditors didn’t get notification about your bankruptcy. To ensure notice, you can find the creditor's correct address and mail Form 309A. Then those savvy Windy City filers amend their bankruptcy matrix electronically.

Take Bankruptcy Course 2

A significant step to getting your dischargeis to take the pre-discharge course. This is a simple step but often forgotten by busy Cook County filers. You are probably busy, but taking 90 minutes to take the approved credit counseling course will ensure you have a successful Chapter 7 bankruptcy in Chicago. In the pre-discharge course, you will decide how you rate your expenses, make a budget, and make goals for your future. Some think the course is presumptuous because it assumes you will have money left to save when this is not always the case. 

To get your discharge for your Chicago bankruptcy, take an approved credit counseling course. It is offered in-person, by telephone or online in English, Spanish and online in other languages. Once you finish the course, you’ll get a certificate of completion to file with the Court.

Attend Your 341 Meeting

Attend your Meeting of the Creditors for a successful Chicago bankruptcy. Prepare for your hearing and dress business casual, not be opera stylish or Lollapalooza laid back. To get to your 341 Meeting, go to the courthouse where you filed your forms and head to room 800. During this meeting, you are required to verify your identity, so make sure you bring your picture ID and social security card. Creditors usually don't show up, and it will likely be just you and the Trustee. The Trustee will swear you in and you’ll be expected to answer questions with short and forthright answers. Cook County residents have gotten through this process by keeping their answers honest and short. 

Dealing with Your Car

During your Chapter 7 bankruptcy in Chicago, you can choose what to do about your car. If you need a vehicle and Chicago Transit won't cut it, you can find a way to keep the vehicle. If it’s already paid off, you can protect it with an exemption, at least up to a certain amount. If you are current on your payments, you can reaffirm the loan with nearly the same terms. The downside is that the debt won't be wiped away with your bankruptcy, but so long as you keep up with the payments, you keep the car. You can redeem the vehicle by making a lump sum payment of the value of the vehicle. Many Cook County filers don't have this kind of money available, but there are redemption lenders. It is similar to taking your Amalgamated Bank of Chicago Credit Card and transferring the balance to another card. The downside is that typically it is at a high-interest rate being locked back into a loan that you can’t discharge. Reaffirmation and Redemption require Court approval and additional paperwork from you. Finally, some filers make transportation arrangements and decide to surrender the car. Return the vehicle to the lender, and your debt is discharged through your Chicago bankruptcy.