What Counts as Home Equity When Filing Chapter 7 in Illinois?
Protecting Your Home When You File for Bankruptcy Relief in Illinois Key Takeaways: In Illinois, home equity is calculated as your property’s fair market value minus your mortgage balance and any other liens, and this figure determines whether your residence is fully protected in a Chapter 7 case. The Illinois homestead exemption generally shields up […]
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 […]