Bankruptcy is often associated with individuals facing financial hardship, but what if you have a high income? Can you still qualify for bankruptcy in Illinois? The answer is yes, but your eligibility and options will depend on several factors, including the type of bankruptcy you file and how your income is assessed under the law. At Thurston Law Firm, we help high-income earners navigate the complexities of bankruptcy and find the best path toward financial relief.
The Illinois Means Test: Do You Qualify for Chapter 7?
The means test is a crucial factor in determining whether a high-income earner can qualify for Chapter 7 bankruptcy, which eliminates most unsecured debts. This test compares your income to the median income in Illinois for your household size. As of 2025, the median income for a single filer in Illinois is around $67,000, with higher thresholds for larger households.
If your income is above the median, you may still pass the means test if your allowable expenses—such as mortgage payments, medical costs, and taxes—significantly reduce your disposable income. If you do not qualify for Chapter 7, Chapter 13 bankruptcy may be a more suitable option.
Chapter 7 vs. Chapter 13 for High-Income Earners
Chapter 7 Bankruptcy: If you pass the means test, Chapter 7 allows for the discharge of most unsecured debts, such as credit cards and medical bills. However, high-income earners often have difficulty qualifying.
Chapter 13 Bankruptcy: If you earn too much to qualify for Chapter 7, Chapter 13 provides an alternative that restructures your debt into a manageable repayment plan over three to five years with usually no interest. This option allows you to retain valuable assets while making court-approved payments. Generally, Thurston Law Firm can usually quote you an estimated payment after a quick phone consultation.
Key Factors Affecting High-Income Bankruptcy Filers in Illinois
Household Expenses – The court considers necessary living costs, including housing, childcare, and other essential expenses that could reduce your disposable income.
Debt Type – The nature of your debt matters. Secured debts like mortgages and car loans are treated differently from unsecured debts like credit cards and personal loans.
Income Stability – If your income fluctuates due to commissions or bonuses, courts may average your earnings over several months to determine your ability to pay.
Why Work with a Bankruptcy Attorney?
Filing for bankruptcy as a high-income earner is more common than you may think. At Thurston Law Firm, our experienced Illinois bankruptcy attorneys can help you:
Determine whether you qualify for Chapter 7 or Chapter 13
Maximize exemptions to protect your assets
Develop a strategic plan to manage debt and rebuild your financial future
Navigate the legal process with confidence
Take Control of Your Financial Future
If you’re struggling with debt despite having a high income, bankruptcy may provide a path forward. Every financial situation is unique, and consulting with a skilled bankruptcy lawyer in Illinois can help you explore all your options.
Contact Thurston Law Firm today to schedule a consultation and take the first step toward financial relief.
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