You must qualify for bankruptcy in order to file for it. The rules for qualifying are different for chapter 7 and chapter 13.

Chapter 7: The means test

The bankruptcy means test helps you figure out how much money you have left after paying basic living expenses. The leftover money is used to pay your creditors. If the leftover income is too high, you fail the means test. If you fail the means test, you cannot file a chapter 7 bankruptcy.

Step #1: Find your annual income based on last 6 months

• Add up all of your income from the last full 6 months. So, for example, if you are filing on September 15th, include all income between March 1st and August 31st.
• If you are married and file a joint bankruptcy case, you will also need your spouse's total income for the last 6 months.
• Multiply by 2. This is your annual income. So, for example, if your income over the last 6 months was $10,000, your annual income will be $20,000.

Step #2: Compare with annual median income

Find the annual median family income for your household size. In Illinois, for cases filed on or after November 1, 2023: 

• One person - $64,303
• Two people - $83,024    
• Three people - $101,710   
• Four people - $120,079

Add $9,900 for beyond 4 in your household. Numbers current as of May 15, 2022. For possible updates see the U.S. Trustee Program Means Testing website.

If your annual income is less than the median income for your household size, you qualify for chapter 7 bankruptcy. You don't have to complete the rest of the means test.

If your current monthly income is more than the median family income in Illinois for your household size, you will have to complete the second part of the means test.

For the second part, you will need to see how much income you have left over after paying your monthly expenses. If this amount is too high, you fail the means test and cannot file for chapter 7 bankruptcy.

An easy way to see if you pass the second part of the means test is to use this online bankruptcy means test calculator.

Chapter 13

You can file for Chapter 13 bankruptcy as long as:

• Your unsecured debts are less than $2,750,000, or 
• If you are married, your or your spouses' combined debts are less than $2,750,000.

You cannot file for Chapter 13 bankruptcy if, during the 180 days before filing a new bankruptcy, a prior bankruptcy was dismissed because:

• You failed to follow a court order; or
• You requested a dismissal.

Also, within 180 days before filing bankruptcy, you must receive credit counseling from an approved credit counseling agency. A list of federally approved credit counseling agencies can be found on the US Trustee's website.