No one starts a business thinking it will fail and they will end up researching bankruptcy laws in Illinois. Things, however, do change, and there may come a time when exercising your bankruptcy options in Illinois becomes the best course of action for yourself and your business.

Learn all you can about bankruptcy law in Illinois before you begin to make a decision about filing for bankruptcy. Understand what the ramifications will be to your life and your business when filing for bankruptcy in Illinois. Before filing for bankruptcy, keep in mind the following:

1. Know what you’re going to do with your life and business once the bankruptcy is complete.
2. Take note on how Illinois bankruptcy law is going to affect life going forward—from getting credit to starting a new business.
3. Analyze the decisions that were made that led to your bankruptcy filing. Take note so you won’t repeat the same mistakes again.
   

Action Steps
The best contacts and resources to help you get it done

Know the exemptions you have under Illinois bankruptcy laws

You should know the exemptions you have available under Illinois bankruptcy laws. Take special notice of homestead exemptions, exemptions regarding pay and pensions and other retirement funds since these are the ones that may have the most impact on your life.

I recommend: Personal Bankruptcy Information has a chart with all of the available exemptions in Illinois and links to other Illinois bankruptcy law information, such as the necessary forms and Illinois bankruptcy courts. The Bankruptcy Site has a page that also covers the available exemptions in Illinois as well a host of other Illinois bankruptcy information.

Understand Illinois' bankruptcy process

Filing for bankruptcy changed drastically with the passage of the 2005 bankruptcy laws. With the changes, it is much harder to file for Chapter 7 bankruptcy protection, so take the time to understand what the new process entails so you can make an informed decision on whether filing for bankruptcy protection is right for you.

I recommend: Learn about the Illinois bankruptcy process with an easy-to-understand explanation at Lawyers.com. Illinois Bankruptcy.com has detailed information on the bankruptcy process from the type of filings that are available to the Illinois bankruptcy courts throughout the state.

Hire a good Illinois bankruptcy attorney to get you through the process

Illinois bankruptcy lawyers are a necessity when filing for bankruptcy. There are plenty of high-quality Illinois bankruptcy attorneys to choose from. Find one that is a good fit for you and your business.

I recommend: Illinois Bankruptcy Lawyers.com has a wealth of information on Illinois bankruptcy attorneys, and it offers a search that allows you to get a free consultation from a bankruptcy attorney in your area. The Law Offices of Jason Wrobel, Ltd., is one of many Illinois bankruptcy law firms that can help you with your filing.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Find out whether bankruptcy laws in Illinois allow you to file jointly with you spouse. If so, talk to your lawyer and see if it is in your best interest to file jointly or on your own.