How long after filing will the creditors stop calling?
Once a creditor or bill collector becomes aware of a filing for bankruptcy protection, all efforts to collect the debt must stop immediately. After the bankruptcy is filed, the court mails a notice to all the creditors listed in the debtor’s schedules. The creditors will then have notice within one week. If this is not soon enough, your attorney can inform the creditor immediately. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct.
Does the spouse of a married person also have to file bankruptcy?
No. In some cases where only one spouse has debts, or one spouse has debts that are not dischargeable, then it might be advisable to have only one spouse file.
What happens to the debtor’s personal property, real property, and other assets?
Once the bankruptcy is filed all the property of the debtor at the time of the filing and certain other property to be received in the future, becomes the property of the bankruptcy estate. This means that the bankruptcy trustee will take control of this property for purposes of satisfying the creditors.
There is certain property which is either excluded or exempt, and the debtor will be able to keep it. Most Debtors filing bankruptcy in Illinois will need to claim the Illinois state exemption; however, if the debtor lived in more than one state during the past two years another state (or federal) exemption may apply.
Can the debtor keep a home and personal property?
As for homes and mobile homes in Illinois, dependent upon which exemption scheme is selected and the debtor’s circumstances, the debtor may exempt up to $15,000 in equity in residential property ($30,000 in a joint case if both spouses are on the deed / title). When calculating equity, a value that is based upon a forced liquidation as opposed to the best selling conditions should be used. Once the value is determined, the amount owed plus selling and transfer costs are deducted from the value to calculate the equity.
As for personal property, in Illinois, exemptions are permitted for a variety of personal property. This includes automobiles, household furnishings and personal effects, jewelry, tools of the trade, retirement plans, life insurance, personal injury awards, earnings, and some other miscellaneous property. The value of each exemption and which exemptions can be used are determined by the statutory exemption scheme selected.