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Going bankrupt is a nightmare that not all people might experience. While the bankruptcy code can’t be altered by any state there are different procedures for each state. For anyone who is living in Illinois, the matter of bankruptcy Illinois courts system will decide on. You should however prepare for the court proceedings when you first start thinking about claiming bankruptcy. As bankruptcy is very complicated you might want to ask a bankruptcy lawyer to explain the bankruptcy Illinois act. This way you will understand what the Illinois courts require from you before they can state that you are bankrupt. As the bankruptcy code has changed in 2005 you will need to go through credit counseling at an approved counseling agency at least 6 months before you file for bankruptcy. You will also need to go through with a financial management instructional course after you have filed for bankruptcy. Before you start the process of bankruptcy filing you will need to gather all of the documents that bankruptcy Illinois courts require. These documents will include any deeds and titles to land and vehicles that you own, loan documents, your tax returns for the last 2 years, property and assets, all debts – both secured and unsecured – with the names of the creditors listed, monthly living expenses, major financial transactions for the last 2 years. You will also need to itemize your current income sources. Once these have been readied and you have talked with a reputed bankruptcy lawyer you can take the means test, to see if you qualify for a chapter 7 or chapter 13 bankruptcy filing. The means test will be administered by your lawyer and you will have the right to a chapter 7 bankruptcy filing. The means test will be based on your monthly income and expenses. If your monthly income and expenses are more than the average for Illinois wage earners you can’t file for chapter 7 bankruptcy. Instead you will be able to apply for chapter 13. In this chapter you can keep all of your assets and property and pay off your creditors. You will be using the wages that you have left from your monthly expenses. The bankruptcy Illinois act allows the debtor to file for chapter 13 even if they qualify for chapter 7. Once you are ready for either a chapter 7 or a chapter 13 bankruptcy Illinois hearing then you have to answer all of the questions that the bankruptcy trustee and your creditors will ask from you. While the bankruptcy Illinois act is not that hard to prepare for you should make sure that you have everything readied before you start applying for bankruptcy. Having all of the items that you need for your bankruptcy hearing ready, will help you to choose if you want a chapter 7 or 13 bankruptcy filed. Muna wa Wanjiru is a web administrator and has been researching and reporting on internet marketing for years. For more information on bankruptcy Illinois, visit his site at bankruptcy Illinois
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