Chapter 7 Bankruptcy in Illinois: What you need to know

Filing Chapter 7 Bankruptcy in Illinois

Much has been written about the bankruptcy reforms of 2005. Suffice to say that most bankruptcy lawyers think the legislation, known as the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), is awful. One of their main complaints is the bankruptcy means test. The means test was put in place to make it more difficult for consumers to file Chapter 7 bankruptcy.

If your income is above the median for a household of similar size in your state, you must compare your expenses against the means test. If your disposable income is too high, there is a presumption that you must be in a Chapter 13 plan, where something is paid back to your unsecured creditors, rather than a Chapter 7 where nothing is paid back.

In Illinois, the average income for a single household is $50,765. If your income, measured over the last six months, is lower than $50,765, you’re presumptively entitled to file Chapter 7 bankruptcy. If your income is higher, you’ll need to work through the means test with an Illinois bankruptcy attorney to see whether you qualify. For a complete list of current income figures for households of all sizes, visit this site.

Cost to file chapter 7 in Illinois

The chapter 7 filing fees in Illinois are $338, but that doesn’t tell the whole story of the real cost to file bankruptcy. Bankruptcy lawyers usually charge between $1,000 and $2,000 to file a chapter 7 case, in addition to the filing fee.

Illinois Bankruptcy Court Locations

There are three federal districts in Illinois: the Northern, Central, and Southern districts. Within each federal district are divisional courthouses that serve residents of multiple counties or cities, with typically a bankruptcy court in each federal divisional courthouse.

The division you file your case in will determine where your 341 meeting of creditors will be held.