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What Is the Difference Between Illinois Chapter 7 and Missouri Chapter 7 Bankruptcy?

After opening a new location for Castle Law Office just across the river in Fairview Heights, Illinois, I’ve gotten quite a few questions about the difference between Missouri and Illinois bankruptcy. In this case, a river doesn’t make much of a difference. In fact, Chapter 7 bankruptcy in Missouri and Chapter 7 bankruptcy in Illinois are basically the same, with a few exceptions.

The Chapter 7 means test was created in 2005 to make sure that anyone filing Chapter 7 bankruptcy truly needed it. The means test has two parts. First, you must compare the median income of a family of your size in your state to your actual income. If your income is higher, then you must go on to part 2. Part two deducts IRS standard and actual expenses to determine if you have disposable income. IRS expenses are different based on the county in which you live. This overall process is the means test and is used to calculate if you are eligible for a Chapter 7. Naturally, the Chapter 7 means test in Missouri and Illinois are slightly different. The median income in Illinois is higher than it is in Missouri. Also, the exemptions that you can use to protect property from your creditors in a bankruptcy vary by state. But, overall, a Chapter 7 bankruptcy in Missouri and Illinois are essentially the same.

The way that you search for a bankruptcy attorney in Missouri and Illinois is also the same. In fact, where ever you are, you would be well-advised to find the best attorney in your area. The best attorney will not only be able to help you have the most accurate Chapter 7 means test, but he or she will also know how to protect the property that is most important to you in your specific state.

If you live in the Metro-East, should you use a Missouri bankruptcy attorney? Not necessarily. Because there are differences in the exemptions and Chapter 7 means tests, you want to consider an attorney who has plenty of experience in Illinois. We have been filing Chapter 7 bankruptcy cases in both Missouri and Illinois for 15 years and have helped countless families in Southern Illinois get relief from their overwhelming debt. We have opened our newest location in Fairview Heights to help those families in a way that is most convenient for them.

What else should you look for in the best Illinois bankruptcy lawyer? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out the best questions to ask any attorney you are thinking about hiring to make sure that he or she is the right one for your case.

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