Illinois Chapter 7 Means Test Calculator 2026
To qualify for Chapter 7 bankruptcy in Illinois, your average monthly income over the 6 months before filing must fall at or below Illinois's state median income for your household size. If your income exceeds the median, you may still qualify by completing the disposable income test — subtracting IRS-allowed monthly expenses from your income. Both steps use 2026 US Trustee Program figures for Illinois.
Chapter 7 discharges most unsecured debts (credit cards, medical bills, payday loans) within 3 to 6 months. Unlike Chapter 13, there are no monthly payments — but a trustee can liquidate non-exempt assets. Illinois's exemption laws protect up to $15,000 in home equity, $2,400 in vehicle equity, and all qualified retirement accounts. See the full exemption table below.
Illinois 2026 Chapter 7 Median Income Thresholds
| Household Size | Annual Income Limit | Monthly Income Limit |
|---|---|---|
| 1 person | $65,460 | $5,455 |
| 2 people | $84,444 | $7,037 |
| 3 people | $98,604 | $8,217 |
| 4 people | $113,376 | $9,448 |
| 5 people | $123,276 | $10,273 |
| 6 people | $133,176 | $11,098 |
Illinois Bankruptcy Exemptions Summary
| Asset Type | Protected Amount | Notes |
|---|---|---|
| Homestead / Home Equity | $15,000 | — |
| Vehicle | $2,400 | — |
| Retirement Accounts | 100% | All qualified plans fully protected |
| Wildcard Exemption | $4,000 | Can apply to any asset |
| Personal Property | $4,000 | — |
| Wages | 85% of gross or 45× minimum wage | — |
Frequently Asked Questions
What is the Chapter 7 income limit for a single person in Illinois in 2026?
For a single-person household, the 2026 Chapter 7 median income limit in Illinois is $65,460 per year ($5,455 per month). If your average monthly income over the past 6 months is at or below this amount, you automatically pass the means test and qualify for Chapter 7.
What happens if my income is above the Illinois median?
If your income exceeds Illinois's median, you proceed to the disposable income test: you subtract IRS-allowed monthly expenses (housing, food, transportation, healthcare) and secured debt payments from your monthly income. If your remaining disposable income is below $166.67/month (or less than $10,000 over 60 months), you still qualify for Chapter 7. Above those thresholds, Chapter 13 may be your best option.
Can I keep my house if I file Chapter 7 in Illinois?
Illinois's homestead exemption protects $15,000 in home equity. If your equity is within this limit and you are current on your mortgage (or reaffirm the debt), you can typically keep your home in Chapter 7. If your equity exceeds the exemption, the trustee may require a sale unless you can pay the non-exempt amount.