New Illinois Bankruptcy Means Test Numbers November 1, 2023

The Illinois bankruptcy means test has new median income numbers that will be used for cases filed on or after November 1, 2023. These numbers determine if a person is eligible to file for Chapter 7 bankruptcy in Illinois and other states. The new income numbers for the Northern District, Eastern Division of Illinois are as follows:

• Household size of 1: $64,303

• Household size of 2: $83,024

• Household size of 3: $101,710

• Household size of 4: $120,079

Source:
https://www.justice.gov/ust/eo/bapcpa/20231101/bci_data/median_income_table.htm

For each additional household member after 4, add $9,900 to the above amounts. If a person's gross household income is below these figures, they pass the means test and qualify for Chapter 7 bankruptcy. However, even if a person's household income exceeds these figures, they may still qualify for Chapter 7 bankruptcy if they have enough allowable expense deductions to offset their above median income, or if the projected amount of disposable income would pay less than 25% of their total unsecured debt. It's also worth noting that if a person's debt is primarily business debt, they do not have to complete the means test and automatically qualify for Chapter 7 bankruptcy. If a person fails the means test and is not eligible to file for Chapter 7 bankruptcy, they may consider filing for Chapter 13 bankruptcy instead.