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What Happens After I File Bankruptcy in Illinois?

Q:What if a creditor continues to contact me after I file bankruptcy in Illinois?

A: Once your bankruptcy is filed, the automatic stay goes into effect and creditors must stop contacting you.  If a creditor calls you after your case has been filed, simply give them your case number, chapter and advise them to contact our office.  If the creditor contacts you again again, make a note of the date, time and person’s name that called on behalf of the creditor. If the creditor continues to contact you, either in writing or by phone, you should contact our office.

Q: Where should I mail my monthly Chapter 13 payment?

A: For cases filed in Kane County, DuPage County, Kendall County, Will County, LaSalle County or Grundy County, Illinois, payments should be made to:

Glenn Stearns, Chapter 13 Trustee
PO Box 2368
Memphis  TN   38101 2368

Q: What happens when I make my monthly payment to the Chapter 13 bankruptcy Trustee?

A: Each month the Trustee receives a payment from you, he will distribute payments to your creditors based on a priority as established by the Chapter 13 plan. If you do not make a payment to the Trustee, he will not distribute payments to your creditors.  We encourage you to get a password from the Trustee so that you may access your case information on the web.

Q: If my wages are being garnished by the IRS or state, when will it stop?

A: The Internal Revenue and/or state’s department of revenue will stop the wage garnishment when they receive the notice of bankruptcy filing from the court.

Q: If I included child support arrearages (back payments owed) in my bankruptcy, when will the garnishment from my wages be reduced or stopped?

A: If you are obligated to pay ongoing child support, usually for a child under the age of 18, the wage garnishment for that portion of child support will continue. However, most agencies are willing to allow you to pay the arrearage or the amount you are behind through the Chapter 13 bankruptcy Trustee. As a result, your garnishment will most likely be reduced for the arrearage.

Q: What should I know about making my mortgage, equity line, real property taxes, homeowners insurance and homeowner association dues after filing bankruptcy?

A:  You are responsible for making your mortgage payment, home equity line payment, real property tax payment, and homeowners association dues payment. Your payments become due the date of the next scheduled payment after your bankruptcy case is filed with the court.

Q: What if I do not receive a bill or statement from my mortgage company after filing bankruptcy?

A: If you file a Chapter 7 bankruptcy, the mortgage company for your home or the finance company for your car may stop sending bills or statements and they may no longer deduct your payment from your bank account. Additionally, you may not be able to make your payment online.  However, you should continue to make your mortgage payment and/or car payment if you want to keep these assets.

Q: What happens if my mortgage company refuses my payments immediately after filing bankruptcy?

A: Resend your payment through regular mail with a copy of your Notice of Commencement of Case that you received from our office.  This will let them know you are in bankruptcy.  If they return the payment again, you should contact us.

Q: Do I need to keep my receipt when making payments on my house or homeowner association dues?

A:  Yes.  We strongly recommend you set up a file for payments you make to your mortgage company and homeowner association. This will be very important if the mortgage company or homeowner association file a Motion for Relief from Automatic Stay, since there will be limited time to respond to the motion.

Q: What is a reaffirmation agreement?

A: A reaffirmation agreement is a legally binding document filed with the bankruptcy court in which you agree to keep making payments on a debt. For example, you are required to sign a reaffirmation agreement if you would like to retain your car, and keep making payments after filing your bankruptcy. Learn more about reaffirmation agreements.

Q: What happens if I change my mind about keeping the car after I sign the reaffirmation agreement?

A: If you sign a reaffirmation agreement and then change your mind, you may rescind or cancel the reaffirmation agreement at any time before the bankruptcy court enters a discharge order, or before the expiration of the 60-day period that begins on the date your reaffirmation agreement is filed with the court, whichever occurs later. To rescind a signed reaffirmation agreement, you must notify your attorney, the creditor and the court in writing. If you do not cancel or rescind the reaffirmation agreement under the correct court procedure, you will be responsible for paying the debt.

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