Chapter 13 Bankruptcy in Illinois
Behind on the mortgage and getting foreclosure notices? Chapter 13 reorganizes what you owe into one affordable, court-protected repayment plan — so you can stop foreclosure, catch up over three to five years, and keep the things that matter most.
Chapter 13 may be right if…
It's the right tool when you have steady income and want to reorganize — not liquidate. A few signs it could be your path:
- You're behind on mortgage or car payments and want to catch up
- Your income is above the Chapter 7 means-test median
- You want to keep property you'd otherwise have to give up
- You have tax debt or support arrears to reorganize
- You need to stop a foreclosure or repossession now
What a plan lets you keep
Stop foreclosure. Catch up. Stay home.
The moment you file, the automatic stay takes effect — a federal court order that immediately halts foreclosure, repossession, wage garnishment, and collection calls. A scheduled foreclosure sale stops.
Then your plan does something nothing else does as well: it cures your mortgage arrears. The missed payments that put you in foreclosure get spread across the three to five years of your plan while you keep making the regular payment going forward. You catch up gradually — and stay in your home.
Illinois homestead exemption amounts for cases filed on or after January 1, 2026.
One payment, built around your real life.
Your plan payment isn't a number pulled from the air. It's based on your disposable income — what's left after reasonable living expenses — and on what your creditors are legally entitled to. You make one monthly payment to a court-appointed trustee, who distributes it.
The plan runs three years if your income is below the Illinois median, five years if it's above. When you finish, remaining eligible balances are discharged — and you come out current on the debts you kept. We build plans people can actually live on, because a plan you can't afford helps no one.
Chapter 13 vs. Chapter 7
If most of your debt is unsecured and your income is below the median, erasing it outright may be the faster path.
Learn how Chapter 7 worksFrom first call to a plan that works
Free consultation
We listen and figure out together whether Chapter 13 — or Chapter 7 — is the right fit for your situation. Free and confidential.
Design your plan
We build an affordable monthly payment around your real income and goals — and you see it before anything is filed.
File & the automatic stay
Filing halts foreclosure, repossession, garnishments, and collection calls right away. The court filing fee is $313.
Confirmation to discharge
The court approves your plan, you make one monthly payment for three to five years, and remaining eligible balances are erased. You come out current and clear.
Chapter 13, answered honestly
Yes — this is what Chapter 13 does best. The moment your case is filed, the automatic stay halts the foreclosure, and your repayment plan lets you cure the missed payments by spreading them across three to five years while you keep making your regular mortgage payment going forward. You catch up gradually and stay in your home.
Chapter 7 erases qualifying unsecured debt in a few months, but it doesn't give you a way to catch up on missed mortgage or car payments. Chapter 13 reorganizes your debt into a single, court-protected repayment plan over three to five years — ideal when you want to keep assets, cure arrears, or your income is above the Chapter 7 limit.
Most people with a regular source of income qualify, within debt limits set by federal law. It's often the right fit if your income is above the Illinois median for Chapter 7, you're behind on a mortgage or car loan, or you have tax or support debt that needs a structured path. The fastest way to know for sure is a free consultation where we review your full picture.
Your plan payment is based on your disposable income — what's left after reasonable living expenses — and on the debts being reorganized, not an arbitrary number. Some people repay a fraction of their unsecured debt, some more; it depends on your income, assets, and the kind of debt you carry. We build it around what you can realistically afford and present it before anything is filed.
The court filing fee for Chapter 13 is $313 — set by the federal court, the same no matter which attorney you use. Your first consultation with us is always free, and we'll give you the full, honest picture of every cost before you commit to anything.
Keeping what you've worked for is the whole point of Chapter 13. Your plan lets you catch up on missed mortgage and car payments over time, and for cases filed in 2026 Illinois protects up to $50,000 of home equity for an individual — $100,000 for a married couple — on top of that. Most of our clients keep their home, their car, and their peace of mind.
A Chapter 13 filing can stay on your credit report for up to seven years — but if you're already behind on payments, your credit is taking new damage every month anyway. The plan stops that slide, and completing it shows you resolved your debt rather than walking away. Many people begin rebuilding well before the plan ends.
Bankruptcy is a legal court process, but in practice it's quiet and private. We handle it discreetly, and your friends, neighbors, and most employers will have no reason to know.
Wondering if Chapter 13 could save your home?
Let's look at your situation together. The consultation is free, confidential, and there's no obligation to file.