- 1). Complete pre-bankruptcy counseling that the court has approved to provide credit counseling certificates. Find court-approved courses by calling the bankruptcy court in your area of Illinois or visiting its website.
- 2). Compile your financial information. Include documentation of your income using pay stubs, statements from investments, tax documents and records of payments from unemployment, Social Security, workers' compensation, alimony and child support. Provide information about all debts including account numbers, creditor names and balances owed. List your monthly household expenses as well, including utility bill payments and estimated grocery costs.
- 3). Acquire the bankruptcy petition documents for your Illinois bankruptcy court district by downloading them from the court website or going to the courthouse in person.
- 4). Take the means test that the court included in your petition paperwork to ascertain which chapter of bankruptcy you qualify for. File Chapter 7 bankruptcy if your income is under the median in Illinois, which is $47,355 as of October 2009. File Chapter 13 if your income is over the median and you have at least $100 per month left over after paying household expenses.
- 5). Complete the rest of the bankruptcy petition honestly. You face possible dismissal if you do not provide completely truthful information. Include all assets, income and creditors.
- 6). File the completed petition at the courthouse. The court will appoint a trustee to supervise your case and give you the date of the 341 meeting, also known as the Meeting of Creditors, in which you will answer trustee and creditor questions about your case.
- 7). Create a three-to-five-year payment plan if you file Chapter 13 bankruptcy. Make a plan that allows you to pay off as much debt as possible without putting yourself into a worse financial situation, but don't worry about debts that you cannot repay within this time because the court discharges any debt left over from a completed payment plan. Consult with the trustee to find a workable solution for both you and your creditors. File the completed plan with the court.
- 8). Attend the 341 meeting and answer any questions from the trustee and any creditors that attend the meeting. Be honest because the trustee will base his recommendation to the court to either discharge your debts or dismiss your case in part on your testimony during the 341 meeting.
- 9). Begin making payments on your repayment plan if you filed Chapter 13 bankruptcy, or wait about six weeks for your notice of discharge if you filed Chapter 7 bankruptcy.
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