The Illinois Bankruptcy Means Test: Figures and Forms (2026)

When evaluating eligibility for Chapter 7 bankruptcy in Illinois, the analysis begins with the Means Test. The Means Test determines whether you have sufficient disposable income to repay unsecured creditors through a Chapter 13 plan rather than proceeding with Chapter 7 liquidation.

The Means Test compares your household’s “Current Monthly Income” (CMI) to the official Illinois median income figures to establish initial qualification for Chapter 7 relief.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Key Takeaways: Illinois Means Test

• Current Monthly Income: The average of the six months of income prior to filing the bankruptcy petition is known as the Current Monthly Income, or CMI, which is compared to Illinois’ state median income.
• The Presumption of Abuse: Surpassing the state median income triggers a statutory “presumption of abuse” under the Bankruptcy Code, requiring additional calculations based on standardized actual IRS living expenses.
• When to File for Bankruptcy: Because CMI is based on the six months prior to filing, short-term increases in income such as overtime, bonuses, or commissions can artificially inflate your average, requiring delaying filing the bankruptcy petition.
• Qualifying for Chapter 7 Bankruptcy: Passing the Means Test means qualifying for Chapter 7 bankruptcy, but that doesn’t mean it’s automatically the best choice. Disposable income needs to be confirmed as well as the value of non-exempt assets.
• The Limits of Chapter 7: Debtors facing a car repossession or foreclosure must file Chapter 13 to keep their assets. Chapter 7 does not provide a legal option to catch up on missed car or mortgage payments.

Understanding the Chapter 7 Means Test

The Means Test calculations begin with completing Official Form 122A-1. Here, your last six months of income are calculated and annualized to compare with the official Illinois median income based on household size. If your household income is at or below the applicable median, no additional calculations are required.

However, to determine whether Chapter 7 is still the best choice, take several additional steps, starting with comparing your income to your expenses to determine your disposable income.

Schedule I (Income) of the bankruptcy petition is based on your income for the month of filing. For example, suppose you are filing in September. The Means Test would include March through August, and September is calculated in Schedule I.

Schedule J (Expenses) is also calculated for the month of filing. Both Schedules are compared to determine disposable income. Just like with the Means Test, where there could be a month that artificially increases the CMI, the same applies to Schedule I.

For example, even without additional income such as a bonus, commission, or overtime, some months there is an extra pay period that would increase the disposable income. Likewise, filing should be delayed.

If you “pass” the Means Test and there are no disposable income issues, the next step is to determine if there is non-exempt equity, which is done by valuing your assets and comparing them to the Illinois exemption statutes. If the non-exempt equity is more than you can afford to pay back to the bankruptcy trustee in ten to twelve months, then Chapter 13 should be considered, as the payment plan is between 36 and 60 months.

Illinois Median Income Figures (2026)

The U.S. Trustee Program updates these threshold brackets twice a year using data compiled by the U.S. Census Bureau. The active median income figures for Illinois are detailed below:

Household Size	Annual Median Income	Monthly Median Income
1 Person	$73,180	$6,098.33
2 Persons	$93,934	$7,827.83
3 Persons	$113,625	$9,468.75
4 Persons	$137,902	$11,491.83

For households with more than four persons, an additional $11,100 is added for each member.

Exceeding the Median Income

Failing the Means Test means there’s a “presumption of abuse” under 11 U.S.C. §707(b), requiring the additional step of completing Official Form 122A‑2. This phase requires using IRS-standardized expenses for categories such as housing, utilities, food, and transportation.

This includes deductions for secured debts like mortgages and vehicle loans, which help reduce further disposable income, allowing debtors to still qualify for Chapter 7 relief despite being above the median.

When Chapter 13 Bankruptcy is the Best Option

Even if you pass the Means Test, there are situations where Chapter 13 is a better option. For example, Chapter 7 does not allow for curing mortgage arrearages; Chapter 13 does, with a three-to-five-year repayment plan that allows you to pay back the missed payments.

For homeowners with an underwater mortgage, Chapter 13 can reduce or even eliminate second mortgages through a process known as “lien stripping.” The Chapter 13 “cramdown” also allows car loans to be restructured by reducing the balance of the loan to the vehicle’s fair market value as long as the car was purchased more than 910 days earlier.

Analyzing Your Options

Evaluating your household earnings against Illinois median income provides only the initial threshold for Chapter 7 eligibility. The Means Test is step one, but it does not resolve the full question of whether Chapter 7 is the appropriate chapter for your circumstances. A complete analysis requires reviewing your disposable income for the month of filing and determining whether you hold non‑exempt equity that could expose assets to liquidation.

If disposable income remains low and your assets fall within Illinois exemption limits, Chapter 7 may provide the most efficient path to debt relief. However, if you need to cure mortgage arrears, prevent vehicle repossession, or manage significant non‑exempt equity, Chapter 13 may offer a more protective and strategic alternative. Understanding how each component of the Means Test interacts with your financial situation ensures that your bankruptcy filing aligns with both eligibility requirements and long‑term financial goals.

Educational Resources

• For Institutions: Colleges and universities may request examination copies of my textbook directly from Routledge Publishing.
• For Students & Practitioners: Single print and digital copies are available via Amazon Books.
• Video Lectures: Stream comprehensive legal breakdowns and video explanations on the Bankruptcy.blog YouTube Channel.

Bankruptcy Court & Consumer Resources

Explore additional consumer guides and state-specific directories to navigate your legal options:

• A step-by-step master guide to completing and understanding the bankruptcy petition.
• Bankruptcy Court Directory: Full listings for the federal bankruptcy court system and trustee contact information.
• State Bankruptcy Exemptions: Review your state‑specific exemptions or compare them with the federal exemptions.
• 341 Meeting Procedures: Prepare for your court date with updated rules, expectations, and practical guidance.

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.