Updated with the latest Illinois income thresholds as of November 1, 2023
This article is brought to you by ROBERT J. ADAMS, THE BILL SLAYER, a Chicago Bankruptcy lawyer.
Navigating Bankruptcy with Expertise
Filing for bankruptcy is a significant step that can lead to a fresh financial start. A knowledgeable bankruptcy lawyer’s guidance is vital in Illinois, especially regarding the Means Test. This crucial evaluation determines whether you’re eligible for debt relief through Chapter 7 or Chapter 13 bankruptcy.
Understanding the Means Test in Illinois
The Means Test is designed to assess if your income falls within the qualifying range for Chapter 7 bankruptcy or if you can manage a repayment plan in Chapter 13. Here are the updated gross income thresholds for Illinois residents:
| # In Household | Monthly Income | 6-Month Income | Annual Income |
|---|---|---|---|
| 1 | $5,581 | $33,551 | $67,102 |
| 2 | $7,074 | $42,446 | $84,892 |
| 3 | $8,495 | $50,975 | $101,951 |
| 4 | $10,190 | $61,144 | $122,289 |
| Additional Person | +$825 | +$4,950 | +$9,900 |
The Means Test does not consider Social Security or Child Tax Credit funds.
How Does the Means Test Affect Your Bankruptcy?
For most, income will be under the Means Test threshold. If your income is higher, the path to Chapter 7 bankruptcy might seem narrower, but you may still qualify with the correct deductions and legal expertise. Knowledgeable bankruptcy attorneys can identify allowable deductions that work in your favor.
In Chapter 13, bankruptcy, the Means Test influences how much you repay. Proficient lawyers can maneuver through the Means Test to potentially reduce your payment obligations. Many Chapter 13 plans do not require full debt repayment and can last up to five years—or less if debts are paid in full.
Each case is unique, and there might be additional elements of the Means Test that could play to your advantage. A seasoned lawyer will discuss these options with you, employing them to enhance your case.
Why Choose a Lawyer for the Means Test?
The Means Test includes complex calculations and detailed legal criteria. Having a dedicated bankruptcy lawyer by your side is imperative to successfully navigate or mitigate the Means Test’s hurdles.
Seek out a Chicago bankruptcy lawyer with extensive experience and understanding of the Means Test to ensure the best possible outcome for your bankruptcy case.
ROBERT J. ADAMS & ASSOCIATES, THE BILLSLAYER, has helped thousands of people qualify for bankruptcy. We help you get a financial fresh start through bankruptcy.
Remember, the information provided in legal blogs is for educational purposes. For personalized legal assistance, always consult directly with a lawyer.