Top Bankruptcy Lawyers in Springfield, IL

Springfield, IL Bankruptcy FAQs

• Where do I file for bankruptcy in Springfield, Illinois?

  The U.S. Bankruptcy Court Central District of Illinois has an office at 600 E. Monroe Street, Room 226, Springfield IL 62701.

• Where can I get bankruptcy forms in Springfield, Illinois?

  Local and national bankruptcy forms for Springfield are at https://www.ilcb.uscourts.gov/local-forms and https://www.uscourts.gov/forms/bankruptcy-forms, respectively.

• Can a debtor in Springfield count on the automatic stay order in chapter 7 bankruptcy to escape child support obligations?

  No, a debtor in Springfield cannot escape from child support obligations using the automatic stay order in a chapter 7 process. The duty to support one's minor offspring is beyond the reach of insolvency bankruptcy remedies. The law classifies these debts are priority ones due to the needs of the child.

• Can a one-year-old tax debt in Springfield be discharged in bankruptcy?

  No, a one-year-old tax debt in Springfield cannot generally be discharged in bankruptcy. To be eliminated using insolvency, a revenue debt must be for income earned, backed by a duly filed return from two years prior at least, and be three years old or more. In this case, the obligation is too new and needs to age for two more years.

• When should a person in Springfield resort to chapter 13 bankruptcy instead of chapter 7?

  A person in Springfield should resort to chapter 13 bankruptcy instead of chapter 7 if there are assets that one desires to shield from liquidation. In chapter 7, properties tied to secured debts, like mortgaged real estate and cars purchased with loan plans, could be liquidated. These are easier to protect using restructuring.

• What is the key difference between bankruptcy in Springfield under chapters 11 and 13?

  The key difference between bankruptcy in Springfield between chapters 11 and 13 is that the creditor has more control and duties under the former. In chapter 11 remedies, bankruptcy trustees do not get involved in the preparation of the reorganization plan and the latter's subsequent approval. These duties are carried out by the claimant.

• Can a debtor in Springfield who earns more than the median annual income in the state still qualify for chapter 7 bankruptcy?

  Yes, a debtor in Springfield who earns above the state median annual income has a chance to qualify under chapter 7 bankruptcy. A petitioner can prove financial hardship by tallying all of the applicable household expenses and then showing that these outweigh the value of the claimant’s monetary assets and inflows.