Illinois Bankruptcy Laws

Federal filing fee for Chapter 7 bankruptcy. Fee waivers available for qualifying low-income filers.

Federal filing fee for Chapter 13 bankruptcy.

You must complete credit counseling from an approved agency within 180 days before filing and a debtor education course before discharge.

Effective January 1, 2026: $50,000 individual / $100,000 joint (increased from $15,000/$30,000 by Public Act SB 1738). Protects equity in your primary residence.

$4,000 in any personal property (unchanged). Also protects motor vehicle equity ($2,400, increasing to $3,600 effective Jan 2026), tools of trade ($1,500, increasing to $2,250), necessary clothing ($4,000), and health aids with no dollar limit.

Qualified retirement plans (401(k), 403(b), profit-sharing, SEP/SIMPLE IRA, traditional and Roth IRA) are 100% exempt if the plan was intended in good faith to qualify under the Internal Revenue Code.

Creditors may take the lesser of 15% of gross wages or the amount by which disposable earnings exceed 45 times the federal or state minimum wage per week. Consumer debt judgments include an additional $1,000 automatic bank account exemption.

Illinois does not allow bankruptcy filers to choose federal exemptions. You must use Illinois state exemptions.