Qualifying for Chapter 7 in Illinois comes down to the federal means test, which has two parts:
The median-income thresholds are set by the U.S. Trustee Program and updated periodically. As a general guide, the figure for a single-earner Illinois household is around $74,000–$75,000, and it rises by roughly $11,000 for each additional household member. Because these numbers change, we confirm the current figure for your exact household size during your free consultation.
| Household size | Approximate Illinois median (annual) |
|---|---|
| 1 person | ~$74,000–$75,000 |
| 2 people | ~$85,000–$95,000 |
| 3 people | ~$100,000–$110,000 |
| 4 people | ~$120,000+ |
| Each additional person | add ~$11,000 |
Figures are approximate and adjust over time. Ask us for the exact current threshold for your household.
Being over the median does not automatically disqualify you. The means test then deducts allowable expenses — housing, transportation, taxes, childcare, and more — from your income. Many higher earners still qualify for Chapter 7 after these deductions. If your disposable income is too high, you can typically file Chapter 13 instead and repay a portion over three to five years.
Illinois requires filers to use state exemptions (the federal exemption set is not available in Illinois). Common Illinois exemptions include:
A Chapter 7 attorney applies these exemptions so that many filers are able to keep their home, car, and retirement savings. Whether a specific asset is protected depends on your equity and the current exemption limits.
If your income is too high to pass the means test, you are not out of options. Most people who do not qualify for Chapter 7 file Chapter 13 instead, which reorganizes debt into an affordable 3-to-5-year repayment plan and can still stop collections, wage garnishment, and foreclosure.
No. Only filers whose income is above the Illinois median must complete the full means test. If your income is below the median for your household size, you pass automatically. Disabled veterans and filers whose debts are primarily non-consumer (business) debts may also be exempt from the test.
Qualified retirement accounts such as 401(k)s, IRAs, and pensions are generally protected in Illinois bankruptcy and are not liquidated. Regular withdrawals you already receive can count toward your monthly income for the means test.
No. There is no minimum debt requirement to file Chapter 7. What matters is whether bankruptcy is the right tool for your situation, which is exactly what a free consultation is for.
Attorney Alex Ranjha (JD/MBA) offers a free, confidential consultation. Flexible payment plans. Se Habla Español.
