Filing Chapter 7 Bankruptcy in Illinois

1. Sign up for and take credit counseling class

1.1. List of counseling agencies

1.2. I usually suggest Institute for Financial Literacy 866 662 4932

2. Attorney obtains credit report and prepares petition & checks exempt property

2.1. Last 6 months paystubs are needed to calculate "means test"

2.1.1. Must be under median income to file Chapter 7

2.2. Exempt property (property you can keep)

2.2.1. Car up to $2400

2.2.2. $4000 wildcard applies to any personal property

2.2.3. All IRAs and retirement plans

2.2.4. $15,000 in equity in real estate

2.3. Petition is filed electronically

2.3.1. Filing fee is $299

2.3.2. Attorneys fees

2.3.2.1. Attorneys fees must be paid before filing case. Attorney's fees range from $1000.00 to $1300.00

2.4. Creditors are notified by court

2.5. Date for creditors meeting is set by court

2.6. Attorney emails last tax return and last two months pay stubs to trustee

3. Client and attorney attend creditors meeting

3.1. Creditors meeting is about 45 days from the filing of the petition. Meetings are held at 219 S. Dearborn, Chicago, IL

3.1.1. Trustee asks questions of debtor under oath

3.1.2. Most times no other parties appear except attorney, trustee and client

4. Client takes post-filing credit counseling class

4.1. Can be taken online or by telephone

5. Order of discharge entered

5.1. Order is entered automatically after about 3 months provided trustee does not object; all listed debts are discharged