How do I know if I am eligible for Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy Law in Illinois outlines how individuals and businesses can seek relief from debt through a federal procedure. To be eligible for Chapter 7 Bankruptcy, a person must pass a “means test.” This test assesses the individual’s current monthly income, based on their household size, to determine if they make too much to qualify for Chapter 7. To pass the means test, applicants must not make over the median income for Illinois families of the same size. In Illinois, applicants must also complete a mandatory credit counseling course before filing Chapter 7. This course is offered online or by phone and provides an overview of the different types of bankruptcy and their consequences. After completion of the course, a certificate of completion must be filed with the bankruptcy court. Individuals seeking Chapter 7 Bankruptcy must also attend a creditors’ meeting and answer questions about the filing. During this meeting, creditors and the trustee assigned to the case have the opportunity to discuss the individual’s assets, liabilities, and finances. Based on this information, creditors can decide if the individual is eligible for Chapter 7 Bankruptcy or if they should pursue other debt relief. Finally, applicants must prove that they do not have enough money or assets to pay their debts. This requires providing the court with documents that list all of their assets, debts, and income. If the court finds that the applicant is eligible for Chapter 7 Bankruptcy, they may be able to discharge all or part of their debt depending on their protection under the law.

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How do I know if I am eligible for Chapter 7 Bankruptcy?

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