Legal Question in Bankruptcy in Illinois

For Chapter 11 bankruptcy in my state, who determines how much is deducted from my total income to pay the creditors and how much is allowed for my necessary expenses, such as food, mortgage, utilities, prescriptions, transportation, etc. - the bankruptcy court, or my bankruptcy lawyer?

Asked on 6/11/11, 5:29 pm

1 Answer from Attorneys

Joseph Michelotti Michelotti & Associates, Ltd.

Usually an individual consumer would file a chapter 7 or chapter 13. In a classic chapter 7 case your necessary expenses do not need to be determined. Chapter 7 is determined by income.

Chapter 13 is a debt repayment plan. You attorney would make an initial determination of your expenses and a trustee would have to approve them

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Answered on 7/21/11, 12:38 pm

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