How to File for Bankruptcy Separately When Married in Illinois
- 1). Consult a competent bankruptcy attorney. It is legal and possible in the state of Illinois for individuals to file for bankruptcy pro se, that is, without an attorney, but it is extremely difficult for untrained individuals to do so successfully. The United States Bankruptcy Court for the Northern District of Illinois notes that bankruptcy law is complex, and debtors who fail to properly complete all documents, or who do not complete each step in the bankruptcy process in a timely manner, may lose their property and other valuable protections afforded by bankruptcy. The court also notes that the Bankruptcy Clerk's office cannot provide legal advice.
- 2). Determine the type of bankruptcy that is appropriate for your situation. Individuals and married couples in Illinois typically file either Chapter 7 bankruptcy or Chapter 13 bankruptcy. Chapter 7 bankruptcy is sometimes referred to as liquidation bankruptcy, because the petitioner's nonexempt assets are turned over to a bankruptcy court trustee, who liquidates these assets and uses the proceeds to pay the creditors. Chapter 13 is sometimes referred to as the Wage Earner's Plan, because the petitioner is able to maintain possession of her assets while she works out a plan to repay her debts. It is possible for one spouse to file for Chapter 7 bankruptcy while the other files for Chapter 13 bankruptcy.
- 3). Gather your records. Whether or not you and your spouse are filing separate petitions for Chapter 7 bankruptcy or Chapter 13 bankruptcy, the court will require some specific information from both of you. This information will include a complete list of your and your spouse's creditors, along with amounts owed and the nature of the debts. Provide a complete list of all sources of household income for both spouses, including amounts and frequency of payments. Both spouses will need to provide a list of monthly living expenses including costs for shelter, food, transportation, clothing, taxes, medical expenses and utilities. Provide the bankruptcy trustee as well with copies of recent pay stubs and a copy of your most-recent federal income tax return.
- 4). Complete an approved course of credit counseling within 180 prior to filing for bankruptcy, and obtain a certificate of completion from the credit counseling organization. Include this certificate at the time you file for bankruptcy. It is possible for the court to allow individuals to file for bankruptcy under emergency conditions without first obtaining credit counseling. However, these situations are rare, and if the court is not satisfied with your reasons for failure to complete the required credit counseling it will dismiss the case.
- 5). File your separate bankruptcy petitions with the appropriate federal district bankruptcy court. There are three district bankruptcy courts in Illinois: the the U.S. Bankruptcy Court for the Northern District of Illinois, the U.S. Bankruptcy Court for the Central District of Illinois, and the U.S. Bankruptcy Court for the Southern District of Illinois. File your petition in the court that has jurisdiction over the geographic region where you reside or where you have your primary place of business.
- 6). Complete a course in personal financial management within 45 days of your meeting with your creditors. Obtain a Debtor's Certification of Completion of Instructional Course Concerning Personal Financial Management and provide it to the bankruptcy trustee. This course is not the same, and should not be confused with, the credit counseling course that you had to complete before you filed for bankruptcy.
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