How to File for Bankruptcy in Illinois: Forms, Exemptions, and Discharge

To file for bankruptcy in Illinois, you choose between Chapter 7 and Chapter 13, complete a pre-filing credit counseling course, prepare a federal petition using Illinois state exemptions, and submit it to the Illinois bankruptcy court for the district where you’ve lived the greater part of the last 180 days. The filing fee is $338 for Chapter 7 or $313 for Chapter 13. Chapter 7 cases usually close in four to six months; Chapter 13 runs three to five years.

Step 1: Decide Between Chapter 7 and Chapter 13

Chapter 7 is a liquidation. A court-appointed trustee reviews your property, sells anything not protected by an Illinois exemption, and uses the proceeds to pay creditors. Most unsecured debts like credit card balances and medical bills are then wiped out, and the case typically wraps up in four to six months.¹ In practice, most Illinois Chapter 7 filers lose no property because state exemptions cover their assets.

Chapter 13 is a repayment plan. You keep your property and make monthly payments to a trustee for three to five years; whatever eligible debt remains at the end is discharged. It’s the right path if you have steady income and want to catch up on a mortgage or car loan, or if you own non-exempt assets you don’t want liquidated.²

The Means Test

Chapter 7 has an income cap. Federal law requires a means test that compares your household income to the Illinois median for your family size. Below the median, you qualify. Above it, a formula applies your allowable expenses and secured debt payments to see whether you have enough disposable income to fund a Chapter 13 plan instead.¹

For cases filed between November 2025 and March 2026, the Illinois median income figures are:³

One earner: $71,304
Household of two: $91,526
Household of three: $110,712
Household of four: $134,366
Each additional person: add $11,100

These numbers change periodically. If you’re filing later, check the U.S. Trustee Program for the current figures. Being above the median doesn’t disqualify you outright, but you’ll need the full calculation to overcome the presumption that a Chapter 7 filing would be abusive.

Step 2: Take the Pre-Filing Credit Counseling Course

You must complete a credit counseling course from an agency approved by the U.S. Trustee Program before you file. If you file first, your case can be dismissed.⁴ The course has to be taken within 180 days before filing, and only an approved agency can issue the certificate the court requires.

A separate financial management course comes later, after you file, and must be finished before your discharge can be entered. The two courses cannot be combined.⁵ Both are available online for roughly $15 to $50 each, with fee waivers for filers who can’t afford them.

Step 3: Gather Your Financial Documents

Bankruptcy paperwork asks for exhaustive detail, and missing documents delay cases. Pull these together before you start the forms:

Income records: pay stubs for the last six months, tax returns for the past two years, and records of any other income including freelance work, rental income, or government benefits
Debt records: statements from every creditor with account numbers and current balances, including credit cards, medical bills, personal loans, and collections
Asset documentation: bank statements, vehicle titles, real estate deeds, retirement account statements, and investment records
Monthly expenses: a realistic breakdown of housing, utilities, food, insurance, transportation, and childcare
Prior bankruptcy filings: case numbers and filing dates

Trustees cross-check your documents against your petition. Inconsistencies invite closer scrutiny and can lead to dismissal.

Step 4: Apply Illinois Exemptions to Your Property

Exemptions define what the trustee can’t touch. Illinois has opted out of the federal bankruptcy exemptions, so you must use the state list.⁶ As of January 1, 2026, the key amounts under Public Act 104-0120 are:

Homestead: $50,000 per individual owner, or up to $100,000 for two or more owners, in a primary residence⁶
Motor vehicle: up to $3,600 in equity in one vehicle⁷
Household goods: no overall dollar cap on furniture, appliances, clothing, computers, phones, and pets, unless a single item has a resale value over $5,000⁷
Wildcard: $4,000 per person, which includes a built-in $1,000 bank account exemption, applied to any property not covered by another exemption⁷
Tools of the trade: up to $2,250 in professional tools or books
Jewelry: one piece up to $5,000
Personal injury awards: up to $22,500

If everything you own fits within these limits, your Chapter 7 case is a “no-asset” case and the trustee has nothing to sell. If you own a home with equity above $50,000, an expensive vehicle, or non-exempt investments, Chapter 13 may protect those assets better because you keep everything while repaying creditors through the plan.

Step 5: Complete the Bankruptcy Forms

Petitions use standardized federal forms.⁸ The core documents are:

Voluntary Petition, which opens the case
Schedule A/B, listing all your property
Schedule C, identifying which property you’re claiming exempt under Illinois law
Schedule D, listing secured creditors like mortgage and car loan holders
Schedule E/F, listing unsecured creditors split between priority debts (taxes, child support) and general unsecured debts
Schedule G, listing active contracts or leases
Schedule H, identifying co-signers
Schedules I and J, your current monthly income and expenses
Statement of Financial Affairs, a detailed history of your recent financial activity
Means Test forms, either qualifying you for Chapter 7 or setting your Chapter 13 payment

Accuracy is not optional. Leaving a creditor off the schedules can prevent that debt from being discharged. Undervaluing assets or padding expenses can draw fraud allegations. If you’re filing without an attorney, check every entry against your source documents.

Step 6: File in the Right Illinois District

Illinois has three federal bankruptcy courts: the Northern District (the Chicago area), the Central District (Springfield and surrounding counties), and the Southern District (the southern part of the state). File in the district where you’ve lived for the greater part of the last 180 days.

The total filing fee is $338 for Chapter 7 and $313 for Chapter 13. Each total includes the base filing fee and a $78 administrative fee; Chapter 7 also carries a $15 trustee surcharge.⁹ You can pay in full at filing, request up to four installments, or apply for a fee waiver if your household income is below 150% of the federal poverty guidelines.

Attorneys file electronically. Self-represented filers submit paper documents at the clerk’s office. Filing without a lawyer is allowed, but the procedure is unforgiving: errors in forms, missed deadlines, or wrongly claimed exemptions can cost you property you could have kept. Attorney fees in Illinois generally run $1,200 to $2,500 for Chapter 7 and $2,500 to $5,000 for Chapter 13. In Chapter 13, fees can often be folded into the repayment plan.

What Happens After You File

The moment the petition is filed, an automatic stay takes effect. This federal injunction stops most collection activity, including lawsuits, wage garnishments, creditor calls, and foreclosure proceedings.¹⁰ It doesn’t stop criminal proceedings, most tax audits, or child support collection, but it buys breathing room while your case moves.

A trustee is assigned. In Chapter 7 the trustee identifies and sells non-exempt assets; in Chapter 13 the trustee collects your monthly payments and pays creditors under your approved plan.

The 341 Meeting of Creditors

Roughly 20 to 40 days after filing, you attend a Meeting of Creditors, called a 341 meeting after the statute.¹¹ Creditors rarely appear. The trustee places you under oath, verifies your identity, and asks questions about your finances and documents. Most 341 meetings are now held remotely and last 10 to 15 minutes. Bring a photo ID and proof of your Social Security number, and answer honestly.

Timeline to Discharge

Chapter 7 discharge typically arrives four to six months after filing, assuming no complications. The financial management course has to be completed before the court will enter the discharge order.⁵

Chapter 13 discharge comes only after you complete every plan payment over the three-to-five-year term and file a certification that any domestic support obligations are current.² Missing payments can convert the case to Chapter 7 or dismiss it entirely.

Debts That Bankruptcy Won’t Erase

Several categories of debt survive either chapter, so it’s worth checking your list before you commit to filing. Non-dischargeable debts include:¹²

Child support and alimony, with no exceptions
Most recent income taxes, taxes for unfiled returns, and taxes involving fraud
Student loans, unless you prove “undue hardship” — a notoriously hard standard to meet
Debts from fraud, including luxury purchases over $900 in the 90 days before filing and cash advances over $1,250 in the 70 days before filing
Debts for death or injury caused by drunk driving
Government fines and penalties, including criminal fines and traffic tickets
Debts for willful and malicious injury to a person or property
Debts you left off the petition, since unlisted creditors may not be bound by the discharge

If You’ve Filed Before

You can file again, but the discharge is gated by waiting periods measured from the earlier filing date:

Chapter 7 after Chapter 7: eight years¹³
Chapter 13 after Chapter 7: four years¹⁴
Chapter 7 after Chapter 13: six years, unless the earlier Chapter 13 paid 100% of unsecured claims or at least 70% under a good-faith best-effort plan¹³
Chapter 13 after Chapter 13: two years¹⁴

Filing inside a waiting period doesn’t stop you from opening a case, but the court won’t enter a discharge at the end.

Credit Impact After Discharge

A bankruptcy stays on your credit report for up to 10 years from the filing date under the Fair Credit Reporting Act.¹⁵ The major bureaus generally remove Chapter 13 filings after seven years, reflecting the completed repayment plan, though the statute sets the outer limit at 10 for all bankruptcies.

Scores tend to start recovering within one to two years after discharge, particularly if you use a secured credit card responsibly and keep any remaining accounts current.

1
United States Courts. Chapter 7 Bankruptcy Basics
2
United States Courts. Chapter 13 – Bankruptcy Basics
3
United States Department of Justice. Median Family Income Table
4
United States Department of Justice. Credit Counseling and Debtor Education Information
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United States Courts. Credit Counseling and Debtor Education Courses
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Illinois General Assembly. Public Act 104-0120
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Illinois General Assembly. Illinois Code 735 ILCS 5/12-1001
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United States Courts. Bankruptcy Forms
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United States Courts. Bankruptcy Court Miscellaneous Fee Schedule
10
Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay
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Office of the Law Revision Counsel. 11 U.S. Code 341 – Meetings of Creditors and Equity Security Holders
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Office of the Law Revision Counsel. 11 U.S. Code 523 – Exceptions to Discharge
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Office of the Law Revision Counsel. 11 U.S. Code 727 – Discharge
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Office of the Law Revision Counsel. 11 U.S. Code 1328 – Discharge
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Office of the Law Revision Counsel. 15 U.S. Code 1681c – Requirements Relating to Information Contained in Consumer Reports