Bankruptcy FAQs
How long does a bankruptcy case take in Chicago?
In Chicago, a typical Chapter 7 bankruptcy case filed through the Northern District of Illinois Bankruptcy Court usually takes about four to six months from filing to discharge. A Chapter 13 case, on the other hand, involves a repayment plan that lasts three to five years. The exact timing depends on your specific financial situation, but most cases in Chicago follow these general timelines.
Where do I file for bankruptcy in Chicago?
All bankruptcy filings for Chicago residents go through the U.S. Bankruptcy Court for the Northern District of Illinois, located at the Dirksen Federal Building, 219 S. Dearborn Street in downtown Chicago. This courthouse handles both Chapter 7 and Chapter 13 cases for Cook County and surrounding areas. Many hearings are also conducted virtually, which makes the process more accessible for residents across the city and suburbs.
Will I have to attend court in Chicago for my bankruptcy case?
Yes, but in most cases, you will not appear before a judge. Instead, Chicago residents must attend a “341 meeting of creditors,” which typically takes place online or at the bankruptcy trustee’s office. This short meeting allows the trustee and creditors to ask basic questions about your financial circumstances. Most Chicago debtors find this process straightforward with the guidance of their attorney.
Can I keep my home if I file bankruptcy in Chicago?
Illinois law allows you to use exemptions to protect certain assets. For Chicago homeowners, the Illinois homestead exemption protects up to $15,000 of equity in your primary residence ($30,000 for married couples filing jointly). Whether you can keep your home depends on the amount of mortgage debt and the available equity, but Chapter 13 often allows families in Chicago to save their homes from foreclosure while catching up on missed payments.
How does bankruptcy affect car ownership in Chicago?
Chicago residents are allowed to protect up to $2,400 in motor vehicle equity under Illinois exemptions. If your car is financed, Chapter 13 may allow you to restructure missed payments, while Chapter 7 may let you surrender the car and discharge the debt if keeping it is not practical. Many Chicago debtors successfully keep their vehicles through careful planning with their attorney.
Are wage garnishments common in Chicago, and can bankruptcy stop them?
Yes, wage garnishments are frequently used by creditors in Cook County to collect unpaid debts. Once you file for bankruptcy in Chicago, the automatic stay immediately halts garnishments, repossessions, and most collection actions. For many local residents in the city, this protection provides instant relief and allows them to regain financial stability.
How much does it cost to file bankruptcy in Chicago?
As of 2025, the federal filing fee for Chapter 7 bankruptcy is $338, while Chapter 13 costs $313. These fees are the same nationwide, but you may have to pay additional Chicago attorney fees and some other charges based on the complexity of your case. In Cook County and the surrounding districts, there may also be court-specific administrative costs or trustee-related expenses that vary depending on your filing.
Is Chapter 7 bankruptcy right for me?
To qualify for a Chapter 7 bankruptcy, individuals must pass a means test comparing their income to the median income for a similar household in Illinois. If their income is below the median, they likely qualify; if above, they may still qualify after deducting certain allowable expenses.
Illinois has its own set of exemptions to protect essential assets from liquidation, such as up to $15,000 in equity in a primary residence (or $30,000 if married and filing jointly), $4,000 in personal property, called the “wildcard” exemption, and $2,400 in equity in a motor vehicle.
Is Chapter 13 bankruptcy for me?
All bankruptcy filings for Chicago residents go through the U.S. Bankruptcy Court for the Northern District of Illinois, located at the Dirksen Federal Building, 219 S. Dearborn Street in downtown Chicago. This courthouse handles both Chapter 7 and Chapter 13 cases for Cook County and surrounding areas. Many hearings are also conducted virtually, which makes the process more accessible for residents across the city and suburbs.
How long does a Chapter 13 repayment plan last?
The length of a Chapter 13 repayment plan is typically three to five years. The specific duration depends on your income level relative to the median income for a similar household in your state. If your income is below the median, you may propose a three-year plan, although it can be extended to five years if necessary to meet the plan’s requirements. If your income is above the median, the plan generally must be for five years. During this period, you will make regular payments to a bankruptcy trustee, who will distribute the funds to your creditors according to the terms of the approved plan.
What debts are dischargeable in Chapter 13 bankruptcy?
Chapter 13 bankruptcy allows for the discharge of many types of unsecured debts, including credit card debt, medical bills, and personal loans, upon the successful completion of the repayment plan. However, certain debts are non-dischargeable. These include domestic support obligations like child support and alimony, most student loans, certain taxes, and debts arising from fraud or malicious conduct. Secured debts, such as a mortgage or car loan, must be paid according to the terms of the plan if you wish to keep the collateral.
Will filing for Chapter 7 bankruptcy stop wage garnishments and collection calls?
Chapter 13 bankruptcy allows for the discharge of many types of unsecured debts, including credit card debt, medical bills, and personal loans, upon the successful completion of the repayment plan. However, certain debts are non-dischargeable. These include domestic support obligations like child support and alimony, most student loans, certain taxes, and debts arising from fraud or malicious conduct. Secured debts, such as a mortgage or car loan, must be paid according to the terms of the plan if you wish to keep the collateral.
Can filing for bankruptcy stop a foreclosure?
Yes, it can. It might even give you up to five years to repay any mortgage arrears owed to the lender or mortgage company.
Our house is paid off, but our other debts are too much. My wages are being taken, and now we are being sued. Can I go bankrupt and still keep my house?
Yes, you can. Filing for bankruptcy can stop people who have won in court from taking your home, wages, or other things you own. It gives you the chance to sort out your money issues and keep your house.
Can bankruptcy stop the IRS or the Illinois Department of Revenue from collecting?
Yes. Bankruptcy stops all debt collection, including by the IRS and the Illinois Department of Revenue. Sometimes, Chicago bankruptcy lawyers can help eliminate interest, penalties, and old tax debt with IRS debt negotiation services.
Client Testimonials
What Our Clients Say
Extremely helpful. I felt really safe about the process. John is extremely helpful and knowledgeable. Any questions I had were addressed immediately and the entire process was quick and easy.
- Erica Walls
Working with John has been great! From start, to finish, John has been extremely helpful and I really appreciate he and his team! Highly recommend!
- Brittney Moss
John is excellent and answers all my questions in a timely fashion and getting my case filed. I would definitely file bankruptcy with this firm again in the near future when needed. I can now rest assured that I’m doing business with a firm that I can trust and to help me be debt free and get my finances back to where it should be. One of the best firms to do business with.
- Lisa Brooks
Very fast professional and makes you feel safe from debt I recommend John to anyone
- Wise Guy
Love the service he’s very understanding Five stars he definitely get that from me He helped me and answered every question me and my daughter asked him lol cool dude thanks John for the help and being understanding keep up the good work and continue blessings people with your knowledge and service
- Latoya Jefferson
Free Consultation - Call 24/7
Fill out the contact form or call us at (312) 883-5422 to schedule your free consultation.
Send Us A Message
"*" indicates required fields
Visit with an experienced bankruptcy attorney in your area or call now for a virtual consultation.
Chicago Office
11070 S Western Ave #9,
Chicago, IL 60643
Map / Directions ➜
Lisle Office
1025 Ogden Ave., Suite 202,
Lisle, IL.
Map / Directions ➜
Phone:
(312) 883-5422
Fax:
(312) 277-8707