If you would like to file a Chapter 7 bankruptcy you must pass the Illinois means test. The test only applies to higher income filers which means that if your income is below the Illinois median for your household size you are exempt from the test and may file a Chapter 7.
What is the income limit for Chapter 7 in Illinois?
Illinois Chapter 7 Bankruptcy Income Limit
| # of People | Annual Income |
|---|---|
| 1 | $62,130 |
| 2 | $78,602 |
| 3 | $94,397 |
| 4 | $113,228 |
What are the qualifications for Chapter 7?
Who Qualifies for Chapter 7 Bankruptcy?
- The average of your monthly income in the previous six months must be lower than the median income for the same-sized household in your state; otherwise, you must pass what’s known as a means test. …
- You can’t have filed for Chapter 7 bankruptcy in the previous eight years.
How do I file Chapter 7 with no money in Illinois?
If you don’t have the money to pay the fees, file the Application for Individuals to Pay the Filing Fee in Installments or the Application to Have the Chapter 7 Filing Fee Waived that you filled out in Step 4. The court will review your application and decide whether you have to pay the court fees.
How long does it take to file Chapter 7 in Illinois?
Chapter 7 bankruptcy to discharge your debts: Generally 90 days from start to finish. The usual bankruptcy takes about two weeks to prepare (emergency cases can be prepared and filed in as little as a day).
What debts Cannot be included in Chapter 7?
Filing for Chapter 7 bankruptcy eliminates credit card debt, medical bills and unsecured loans; however, there are some debts that cannot be discharged. Those debts include child support, spousal support obligations, student loans, judgments for damages resulting from drunk driving accidents, and most unpaid taxes.
Can I spend money while on Chapter 7?
Spending While in Chapter 7
If you file a Chapter 7 bankruptcy petition and it is a “no asset” case, your spending after filing should reflect what you stated on your schedules. If either your income or your expenses change considerably while still in Chapter 7, again, you should consult with your attorney.
What would disqualify me from Chapter 7?
5 Reasons Your Bankruptcy Case Could Be Denied
The debtor failed to attend credit counseling. Their income, expenses, and debt would allow for a Chapter 13 filing. The debtor attempted to defraud creditors or the bankruptcy court. A previous debt was discharged within the past eight years under Chapter 7.
What do you lose when you file Chapter 7?
Chapter 7 bankruptcy erases or “discharges” credit card balances, medical bills, past-due rent payments, payday loans, overdue cellphone and utility bills, car loan balances, and even home mortgages in as little as four months. But not all obligations go away in Chapter 7.
Is it hard to get Chapter 7?
Even if you are in dire financial straits, Chapter 7 may not be for you. Applicants must clear assorted hurdles before a bankruptcy court approves the filing. Among them: As mentioned above, applicants must complete a debt counseling course with an approved credit counseling agency no more than 180 days before filing.
What is the downside of Chapter 7?
Disadvantages to a Chapter 7 Bankruptcy:
The Trustee will sell any non-exempt property you own. If you want to keep a secured asset, such as a car or home, and it is not completely covered by your bankruptcy exemptions then Chapter 7 is not an option.
Do you have to pay back Chapter 7?
When you have a debt discharged through Chapter 7 bankruptcy, you’re no longer legally required to pay that debt back. That means the money you were paying toward that loan or credit card, for example, can now be used for other things, like household necessities.
Can I keep my car if I file Chapter 7 in Illinois?
If you file Chapter 7 and you own a vehicle outright, you can keep the car if it is worth $6,400 or less by using your Illinois motor vehicle and personal property exemptions.
Does Chapter 7 wipe out all debt?
Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property.
Can I get credit after Chapter 7?
Yes, you can get a credit card after filing chapter 7. However, you’ll have to wait at least three months to apply, and you’ll have the best chance of acceptance if you apply for a secured credit card.
Can you make too much money for Chapter 7?
If you earn a high amount of income but are struggling to repay a substantial amount of unsecured debt, you might believe that your income disqualifies you from being able to file for bankruptcy. Can you make too much money to file for bankruptcy? The answer to this question is generally no.
Can I file Chapter 7 if I live with my parents?
If you file for Chapter 7 bankruptcy while living with your parents, you might have to include their income and expenses in your paperwork. You can file for Chapter 7 bankruptcy if you live with your parents, regardless of whether you support yourself or rely on your parents for financial support.
How long does a Chapter 7 stay on your credit Illinois?
7 to 10 years
A bankruptcy generally affects a debtor’s credit report for 7 to 10 years.
What is the debt limit for Chapter 7?
There is no ceiling on the amount of debt with which you can file for Chapter 7 bankruptcy. Chapter 7 also is often preferred over Chapter 13 because it wipes out debt and doesn’t involve repayment.
What do you lose when you file Chapter 7?
Chapter 7 bankruptcy erases or “discharges” credit card balances, medical bills, past-due rent payments, payday loans, overdue cellphone and utility bills, car loan balances, and even home mortgages in as little as four months. But not all obligations go away in Chapter 7.
Does Chapter 7 Get rid of all debt?
Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property.