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Bankruptcy Chapter 13 in Illinois

Filing for Chapter 13 in Illinois allows you to reorganize and reduce your debt, pay it off with a manageable repayment plan, and keep your home, car, and other personal property.

Explore Chapter 13 Bankruptcy

What you need to know

What Is Chapter 13 Bankruptcy in Illinois?


Chapter 13 is a sure-fire method for preventing foreclosure and other repossessions. Another amazing benefit is that as soon as you file for 13, the court issues an "automatic stay," ordering your creditors to back off.

This means:

Contact DebtStoppers today to schedule a free, no-obligation consultation with one of our experienced Illinois bankruptcy lawyers. We'll help you determine the best option for your financial situation.

Chicago Chapter 13 Bankruptcy Lawyers

Are you buried in unpaid bills? Are you missing mortgage payments? Have you received a foreclosure notice? You don't have to give up hope! An Illinois 13 plan can stop foreclosure and repossession while protecting your wages or other assets. Debt restructuring can give you the time you need to dig yourself out of debt and get back on the path to prosperity. Instead of paying the full amount you owe, you will make new payments determined by the amount you can actually afford.

The Means Test

When filing for Chapter 7 bankruptcy in Illinois, debtors have to pass "the means test" to show that they have no other way to pay off their debts. The means test looks at your household income and your disposable income. If you don't pass the means test, you can't file.

The means test has no bearing on your ability to file a Chapter 13. You can still take advantage of the relief it offers regardless of your income. Instead, your current monthly income information will be used to establish your payment plan.

Pros and Cons

As with anything in life, an Illinois Chapter 13 bankruptcy plan has its pros and cons. It is an excellent option for avoiding foreclosure (or any other type of repossession) during a temporary financial setback.

However, this doesn’t mean that your debt disappears entirely. You still have to make payments and stick to your repayment plan for several years if you want to maintain protections. If you don't have a steady income, Chapter 7 might be a better choice for you.

The Filing Process

To start bankruptcy proceedings in Illinois, you or your attorneys will submit a petition and the necessary forms to the nearest bankruptcy court. (In Chicago, that's the Central District of Illinois.) Once your case is filed, the court will issue an automatic stay, legally prohibiting your creditors from contacting you.

Bankruptcy has helped millions of Americans break free from the endless cycle of debt to live prosperous, financially independent lives. To find out if a DebtStoppers plan can help you escape your financial burdens, call or text us today at 312-913-0630. You can also sign up for a free, one-on-one debt analysis with one of our experienced Illinois attorneys.

DebtStoppers can help you stop the endless creditor phone calls and get your finances back on track with Chapter 13. Reach out by phone or text at 312-913-0630.

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