Legal Question in Bankruptcy in Illinois

The attorney working with you should advise you, but it is likely you will be able to keep your home. You are provided a $15,000.00 homestead exemption, meaning that you only have approximately $4,000.00 in available equity. If the trustee tried to sell the property, closing costs, property taxes and the trustee's own fees would fully absorb the equity and the creditors would not benefit.

You should also seek advice to determine whether it makes sense for you to file bankruptcy and, if so, whether it is the best time for you to do so.

The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) your income information for July 2011 through the present, including wages and unemployment during that period; (2) all your bills (three months� copies neatly assembled); (3) last four years� tax returns; (4) a credit report (use www.annualcreditreport.com to obtain free report if not requested in last year); and (5) other information that may apply, such as copies of lawsuits. Call at your earliest convenience to afford the most opportunity in which to be advised about your best course. You are not required to use an attorney in your area.

I do not recommend filing bankruptcy on your own. There are too many complex issues. I have seen several posts on this site for debtors who filed on their own and are seeking counsel concerning complications. Most of them will have a hard time finding an attorney to get involved to unwind the mess without the attorney charging several times what would originally have been paid.

You are allowed to have $15,000 in equity in your house in Illinois. $30,000 if you own it jointly. You would not ever be required to sell your home to pay your debts but having too much equity in your home may lead to you filing a Chapter 13 (repayment plan) instead of a Chapter 7. Also, just because your house is worth $80,000 it does not mean that you would net that much if you sold it so you may qualify for the Chapter 7.