Chapter 7 Bankruptcy Lawsuit in Illinois

Illinois Chapter 7 Exemptions

Illinois is an opt-out state, so an Illinois debtor may not elect the federal Section 522(d) exemptions and must use the Illinois state set (735 ILCS 5/12-901 et seq.). (Source: Nolo, Illinois Bankruptcy Exemptions.)

Homestead, Vehicle, and Wildcard (2026 figures)

Effective January 1, 2026 (Public Act 104-0120), Illinois increased its homestead exemption to $50,000 individual / $100,000 joint (was $15,000 / $30,000) under 735 ILCS 5/12-901, and its motor-vehicle exemption to $3,600 (was $2,400) under 735 ILCS 5/12-1001(c). The wildcard remains $4,000 individual / $8,000 joint for any personal property under 735 ILCS 5/12-1001(b). The higher homestead and vehicle figures apply only to cases filed on or after January 1, 2026; earlier cases used the lower amounts. (Source: Nolo, Illinois Bankruptcy Exemptions.)

Means Test: Illinois Median Income

The Chapter 7 means test compares a debtor's six-month average gross income to the state median family income for the household size. For Illinois, the U.S. Trustee median family income for a household of four is $137,902 (U.S. Trustee median family income, eff. April 1, 2026; smaller households use lower figures). Below-median filers are generally not presumed to be abusing Chapter 7; above-median filers complete Form 122A-2. (Source: U.S. Trustee Program, justice.gov/ust.)

Which State's Exemptions Apply

Under the 730-day domicile rule (11 U.S.C. Section 522(b)(3)), a debtor must have been domiciled in Illinois for the 730 days before filing to use Illinois exemptions; otherwise an earlier state's set or the federal exemptions may apply.

To compare your six-month income against the Illinois median, use the Chapter 7 means test calculator at /tools/chapter-7-means-test-calculator. To estimate what property Illinois exemptions might protect, use the bankruptcy exemption estimator at /tools/bankruptcy-exemption-estimator.

Exemption amounts change — verify current figures with an attorney. People's Justice is not a law firm and does not provide legal advice; we connect you with licensed attorneys, and we are not a government agency.