What Is a Motion to Incur Debt for a Chapter 13 Home Purchase in Illinois?
Understanding Court Permission to Buy a Home During a Repayment Plan Key Takeaways: A motion to incur debt is a formal request asking the bankruptcy court and trustee for permission to take on new financial obligations, such as a mortgage, while your Chapter 13 case remains active. In Illinois, this step is required because a […]
Illinois Caps Wage Garnishment at 15%: How Chapter 7 Stops It Fast
Understanding the Illinois 15% Garnishment Cap and Your Fastest Path Out Key Takeaways: Illinois law caps wage garnishment under 735 ILCS 5/12-803 at the lesser of 15% of gross weekly wages or the amount by which disposable earnings exceed 45 times the greater of federal or state minimum wage, with a hard floor protecting weekly […]
Can Chapter 7 Discharge Back Rent Owed to an Illinois Landlord?
Understanding Whether Bankruptcy Can Wipe Out Past Due Rent in Illinois Key Takeaways: Chapter 7 bankruptcy can discharge back rent owed to an Illinois landlord because unpaid rent is treated as unsecured, contract-based consumer debt under written leases or oral month-to-month arrangements. However, discharging the money debt does not undo an eviction, since a possession-only […]
How Much Home Equity Can I Have and Still File Chapter 7 in Illinois?
Protecting Your Home When Debt Feels Overwhelming Key Takeaways: Filing Chapter 7 in Illinois does not automatically mean losing your home. The outcome depends on your equity and whether Illinois’s homestead exemption shields it. Effective January 1, 2026, Illinois protects $50,000 of homestead equity for individual filers and $100,000 for married couples who both hold […]
Can a Chapter 13 Debtor Buy a House in Illinois Before Discharge?
Owning a Home While Repaying Debt: Your Rights as an Illinois Chapter 13 Filer Key Takeaways: Yes, a Chapter 13 debtor in Illinois can often buy a house before discharge, but only with proper court or trustee involvement and a feasible repayment plan. Because Chapter 13 plans run three to five years under 11 U.S.C. […]