Eligibility

• To file for consumer bankruptcy protection in Illinois, you must be a U.S. citizen and a state resident for at least two years. All debtors are required to complete court-approved credit counseling in the six months prior to filing. There is no limit to the amount of debt you can include in a Chapter 7 bankruptcy. To file Chapter 13, you must have a regular and verifiable source of income. As of 2010, you may claim no more than $360,475 in unsecured debt and $1,081,000 in secured debt in a Chapter 13 case.
  
  

Means Test

• Prior to filing your Chapter 7 petition, you must first pass a means test. The means test looks at your income for the previous six months and compares it to federal income guidelines. As of 2010, the maximum median income allowed for a single debtor in Illinois is $45,941. Joint debtors may earn a maximum of $59,838. If you fail to pass the means test, you will have to file Chapter 13 bankruptcy instead.
  
  

Filing

• All bankruptcy petitions must be filed in the Northern, Southern or Central district bankruptcy court, depending on where you live. As of 2010, Chapter 7 debtors must pay a filing fee of $299. Chapter 13 debtors must pay $274. At the time you file, you must supply the court with a complete list of your creditors and your credit counseling certification. Within 14 days of filing, you must also provide the court with a complete list of your monthly income and expenses, assets and liabilities and a statement of financial affairs.
  
  

Chapter 7 Exemptions

• In a Chapter 7 case, a certain amount of your assets are seized and liquidated in order to pay your creditors. Each state allows debtors to exempt some of their property. As of 2010, Illinois debtors may exempt up to $15,000 worth of home equity, a motor vehicle up to $2,400, tools of the trade up to $1,500 and miscellaneous personal property up to $4,000.
  
  

Chapter 13 Repayment

• In a Chapter 13 bankruptcy, you agree to repay a certain percentage of your debts over 36 to 60 months. The means test determines how long your repayment plan will last. If your median income is greater than the median for your family size, you will have to pay for five years. If it's less, your plan will only last three years. You cannot receive a discharge of your case until your repayment plan is completed.