What is a Consumer Chapter 11 Bankruptcy in Illinois?​



While Chapter 11 is typically used by businesses for the purposes of liquidating or reorganizing large amounts of debt, it may be the only form of bankruptcy relief available for certain consumers.  Examples of the type of consumer who utilizes the Chapter 11 bankruptcy process are:



• Small business owners;
• Consumers with above-median income (i.e., high-income) and primarily consumer debts;
• Consumers with debts above the Chapter 13 statutory limits;
• Consumers with significant non-exempt assets that they want to try to keep;

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How Does a Consumer Chapter 11 Work?



Similar to a Chapter 13 bankruptcy case, a Chapter 11 bankruptcy case allows consumers and businesses to create a plan in which creditors are repaid over a set period of time without subjecting their assets to liquidation.  However, unlike a Chapter 13 bankruptcy case, the repayment period can be for a period greater than five years.  For consumers who successfully complete the terms of their Chapter 11 plan, they will receive a Chapter 11 discharge.  In contrast, certain businesses can obtain a Chapter 11 discharge once the Chapter 11 plan has been approved by the bankruptcy court.

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What are the Requirements for Filing Consumer Chapter 11 in Illinois?


In order to file a consumer Chapter 11 bankruptcy case in Illinois, you need to satisfy the following requirements:

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1. You must reside in the U.S;
2. You must complete the Means Test to determine your Chapter 11 payment; and
3. You must participate in and complete a Credit Counseling course.



 

How Do I Get Started?

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Starting the bankruptcy process begins with completing 360 Legal’s℠ online bankruptcy evaluation or by scheduling your free initial consultation.  Click Here to Get Started​



For business-related bankruptcy matters, please visit Morris Campbell LLC online.