Income Limits for the Chapter 7 Means Test

Illinois has median incomes based on household size for those who file for Chapter 7 bankruptcy in Illinois. If your income is below the state’s median for your household size, you will be exempt from the “means test,” but for all others, this test is necessary to determine your eligibility.

A client’s average household income is generally based on the average monthly income over the past six months, which is then multiplied by 12 for the means test. If you are above your median income-limit but your income has decreased within the past six months, you may benefit from waiting one or more months until you are eligible. The most common income-levels are as follows:

– 1-member household: $47,536
– 2-member household: $61,253
– 3-member household: $70,014
– 4-member household: $81,680
– 5-member household: $89,780

Your “income” includes most conceivable sources of income, including standard income, business income, rental income, unemployment income, interest/dividends, retirement plans/pensions, and even household expenses which are paid by others.

If you are struggling financially and considering filing for Chapter 7 bankruptcy, you’re not alone. Contact an experienced bankruptcy attorney today for a free consultation.