Illinois Bankruptcy Law and the Federal Code
After filing, debtors are subject to extensive court requirements for legal compliance. Both federal law and state law combine to form the applicable body of law, and in some cases, even county or city regulations may play a role. The federal Code regulates all Illinois bankruptcy cases filed under Chapter 7 and Chapter 13. The Code provides the framework in which state laws are applied, including, but not by way of limitation, Illinois property laws, title and deed issues, liability for contracts and claims, and even liability for potential claims of all sorts and types. County and local ordinances also create liability for taxes, civil and criminal fines, and assessments. All property owned and all claims of any kind must be included with the schedules filed with the court, whether asserted, claimed, pending, contingent, or a combination of any of these statues.
Illinois state collection laws play a vital role in determining creditor rights. Upon filing, an automatic stay prevents almost all creditors pro seizing assets, prevents courts from entering judgments, and even prevents creditors from calling for collection claims. However, be aware, that creditors may file a motion to lift stay that will be granted by the court in many circumstances, which allows creditors to resume collection efforts (if receiving specific court approval).
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