Bankruptcy in Illinois
In Illinois you use state exemptions only (exemptions are the property the law lets you keep). Your home (homestead): $50,000 per person in a home you own or lease and live in (house and land, condominium, mobile home or co-op).
You file in one of 3 federal bankruptcy courts:
Checked against official sources: October 25, 2026. · Free letter and checklist ↓
What you can keep in Illinois
Exemptions are the property the law lets you keep. You use the Illinois list. The federal list is not available in Illinois.
Law: 735 ILCS 5/12-1201
| What | Illinois exemption |
|---|---|
Home (homestead) | $50,000 per person in a home you own or lease and live in (house and land, condominium, mobile home or co-op). If 2 or more people own the home, each person's exemption is their ownership share of $100,000. Each individual gets their own exemption, so two co-owners who both live there can protect up to $100,000 together. Amounts raised from $15,000 (and $30,000 for co-owners) on January 1, 2026. No filing or declaration is required by the statute. Law: 735 ILCS 5/12-901 |
Car or other vehicle | $3,600 of your equity in one motor vehicle (per person) Law: 735 ILCS 5/12-1001(c) |
Household goods and clothing | All household goods and personal possessions (furniture, appliances, clothing, computers, phones, pets, health aids and more), but a creditor can ask the court to take any single item with a resale value over $5,000. One piece of jewelry up to $5,000. Law: 735 ILCS 5/12-1001(a) |
Wildcard (any property) | $4,000 of your equity in any other property (per person). Outside bankruptcy, $1,000 of this is an automatic exemption for bank accounts. Law: 735 ILCS 5/12-1001(b); 735 ILCS 5/12-1001.1 |
Tools of your trade | $2,250 of your equity in tools, implements and professional books of your trade Law: 735 ILCS 5/12-1001(d) |
Wages | A creditor can take no more than the lesser of 15% of your gross weekly pay or the amount your weekly take-home pay is above 45 times the federal or Illinois minimum hourly wage (whichever is higher). The rest is protected. Law: 735 ILCS 5/12-803 |
Retirement accounts | Pensions, 401(k)s, IRAs, government and church plans and Illinois public pensions are exempt if the plan is meant in good faith to qualify under the tax code. Law: 735 ILCS 5/12-1006 |
Public benefits | Social Security, unemployment, public assistance, veterans' benefits, disability or illness benefits, and alimony or support you need for yourself and your dependents are exempt. Workers' compensation payments are also protected. Law: 735 ILCS 5/12-1001(g); 820 ILCS 305/21 |
Other exemptions |
Law: 735 ILCS 5/12-1001(f); 735 ILCS 5/12-1001(h); 735 ILCS 5/12-1001(j) |
Amounts: January 1, 2026. Amounts are set by statute and are not indexed.
The means test in Illinois: first step
Official Form 122A-1 compares your household's yearly income with the median income in Illinois. Here are the official medians:
- 1 person$73,180
- 2 people$93,934
- 3 people$113,625
- 4 people$137,902
- Each extra person+$11,100
Applies to cases filed on or after April 1, 2026. 1 = one earner; 2, 3, 4 = people in the household; add = amount added for each person over 4
Where to file in Illinois
You file in the federal district where you lived (your domicile) for most of the last 180 days. Illinois has three districts. Your county decides the district and division: Northern District county list at https://www.ilnb.uscourts.gov/court-information2; Central District county lists on each office page (https://www.ilcb.uscourts.gov/court-info/court-locations/peoria, https://www.ilcb.uscourts.gov/court-info/court-locations/springfield, https://www.ilcb.uscourts.gov/content/urbana) and the map at https://www.ilcb.uscourts.gov/sites/ilcb/files/ILCB%20Counties%20-%20URBANA.pdf; Southern District map at https://www.ilsb.uscourts.gov/southern-district-illinois-case-assignment-map.
Law: 28 U.S.C. 1408
Divisions: Eastern Division (Chicago): Cook, DuPage, Lake, Kane, Will, Grundy, LaSalle, Kendall counties; Western Division (Rockford): Boone, Carroll, DeKalb, JoDaviess, Lee, McHenry, Ogle, Stephenson, Whiteside, Winnebago counties
Clerk's phone: (312) 408-5000 (Chicago); (815) 987-4350 (Rockford)
Divisions: Peoria (Bureau, Fulton, Hancock, Henderson, Henry, Knox, Marshall, McDonough, Mercer, Peoria, Putnam, Rock Island, Stark, Tazewell, Warren, Woodford); Springfield (Adams, Brown, Cass, Christian, DeWitt, Greene, Logan, Macon, Macoupin, Mason, McLean, Menard, Montgomery, Morgan, Pike, Sangamon, Schuyler, Scott, Shelby); Urbana (Champaign, Coles, Douglas, Edgar, Ford, Iroquois, Kankakee, Livingston, Moultrie, Piatt, Vermilion)
Clerk's phone: (309) 671-7035 (Peoria); (217) 492-4551 (Springfield); (217) 974-7330 (Urbana)
Divisions: East St. Louis, Benton
Clerk's phone: (618) 482-9400 (East St. Louis); (618) 435-2200 (Benton)
Free help in Illinois
- Chicago Bankruptcy Pro Se Help Desk (U.S. Bankruptcy Court, Chicago Bar Association and Legal Aid Chicago) · (312) 229-6344
- Legal Aid Chicago · 312-341-1070
- Prairie State Legal Services (bankruptcy legal advice line for northern and western Illinois) · 815-491-8110
- Land of Lincoln Legal Aid (central and southern Illinois) · (877) 342-7891
- Illinois Legal Aid Online
- Find free legal aid at LawHelp.org
- Northern District – Court's self-help page
- Central District – Court's self-help page
- Southern District – Court's self-help page
Free letter and checklist
Letter: tell a creditor you filed bankruptcy
Notice to a creditor or debt collector with your case number, court, filing date and chapter.
Checklist: what to gather before you file
Income, tax returns, debts, property and budget papers the federal forms ask about, with Illinois's courts.
Bankruptcy in Illinois by topic
Exemptions in Illinois
Home, car, household goods, wildcard and more, with the law for each.
The means test in Illinois
The official median income and the first-step check.
Where to file in Illinois
The bankruptcy courts, divisions, fees and the 341 meeting.
Good to know in Illinois
- Illinois raised its exemptions on January 1, 2026: homestead from $15,000 to $50,000, vehicle from $2,400 to $3,600, tools from $1,500 to $2,250, and personal injury payments from $15,000 to $22,500.
Law: Public Act 104-0120
- A home held by a married couple as tenants by the entirety cannot be sold to pay a judgment against only one spouse, unless it was put in that form to avoid existing debts.
Law: 735 ILCS 5/12-112
- Property bought within 6 months before filing is presumed to have been bought with bankruptcy in mind, and property bought to turn non-exempt assets into exempt ones in fraud of creditors loses its exemption.
Law: 735 ILCS 5/12-1001
Changes in 2024–2026
Public Act 104-0120, effective January 1, 2026: homestead $15,000 -> $50,000 per person ($30,000 -> $100,000 for 2+ owners); vehicle $2,400 -> $3,600; tools of trade $1,500 -> $2,250; personal injury $15,000 -> $22,500; household goods rewritten into a broad exemption with a $5,000 per-item resale cap and one piece of jewelry up to $5,000; $1,000 of the $4,000 wildcard made an automatic bank-account exemption in collection cases.
Law: SB 1738
Questions about bankruptcy in Illinois
Can I use the federal bankruptcy exemptions in Illinois?
No. Illinois requires you to use the state exemptions.
What is the homestead exemption in Illinois?
$50,000 per person in a home you own or lease and live in (house and land, condominium, mobile home or co-op). If 2 or more people own the home, each person's exemption is their ownership share of $100,000.
How much of a car can I keep in bankruptcy in Illinois?
$3,600 of your equity in one motor vehicle (per person)
Does Illinois have a wildcard exemption?
$4,000 of your equity in any other property (per person). Outside bankruptcy, $1,000 of this is an automatic exemption for bank accounts.
What household goods can I keep in Illinois?
All household goods and personal possessions (furniture, appliances, clothing, computers, phones, pets, health aids and more), but a creditor can ask the court to take any single item with a resale value over $5,000. One piece of jewelry up to $5,000.
Are retirement accounts protected in bankruptcy in Illinois?
Pensions, 401(k)s, IRAs, government and church plans and Illinois public pensions are exempt if the plan is meant in good faith to qualify under the tax code.
Are my wages protected in Illinois?
A creditor can take no more than the lesser of 15% of your gross weekly pay or the amount your weekly take-home pay is above 45 times the federal or Illinois minimum hourly wage (whichever is higher). The rest is protected.
Where do I file bankruptcy in Illinois?
You file in the federal district where you lived (your domicile) for most of the last 180 days. Illinois has three districts. Your county decides the district and division: Northern District county list at https://www.ilnb.uscourts.gov/court-information2; Central District county lists on each office page (https://www.ilcb.uscourts.gov/court-info/court-locations/peoria, https://www.ilcb.uscourts.gov/court-info/court-locations/springfield, https://www.ilcb.uscourts.gov/content/urbana) and the map at https://www.ilcb.uscourts.gov/sites/ilcb/files/ILCB%20Counties%20-%20URBANA.pdf; Southern District map at https://www.ilsb.uscourts.gov/southern-district-illinois-case-assignment-map.
What is the median income for the means test in Illinois?
For cases filed on or after April 1, 2026: 1 person: $73,180; 2 people: $93,934; 3 people: $113,625; 4 people: $137,902; Each extra person: +$11,100.
Where can I get free help with bankruptcy in Illinois?
Chicago Bankruptcy Pro Se Help Desk (U.S. Bankruptcy Court, Chicago Bar Association and Legal Aid Chicago), Legal Aid Chicago and Prairie State Legal Services (bankruptcy legal advice line for northern and western Illinois).