§547 Preferential Transfers in Illinois

How 11 U.S.C. § 547 applies in Illinois — federal bankruptcy law, Illinois district data.

What §547 Preferential Transfers Does

If you paid a creditor more than $600 in the 90 days before filing (or 1 year for insider transfers), the trustee may "avoid" that payment as a preferential transfer and recover the money for distribution to all creditors equally. This rule protects the fundamental bankruptcy principle of equitable distribution.

Key points:

Illinois Bankruptcy Data (FJC)

283,280
Total filings
63.4%
Dismiss rate
106,795
Prior filers
24.9%
Prior discharge rate

Districts covered: N.D. Ill., C.D. Ill., S.D. Ill..

Apply This to Your Case

The rules above are federal — they apply identically in every state. What varies by state is exemptions (§522), median income thresholds (means test), and case-law interpretations of ambiguous terms. For a Illinois-specific answer, check the screener or consult a local attorney.

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Related Illinois Statutes

§547 Preferential Transfers in Other States