Can I file bankruptcy in Illinois if I don't have any income currently?

Filing bankruptcy in Illinois is possible, even if you do not currently have any money coming in. In fact, one of the major reasons that people file bankruptcy is because a job loss or some other event causes them to have no income and to be unable to pay their debts.

If you have no income coming in, this likely means that you will be filing a chapter 7 bankruptcy, as opposed to a chapter 13 bankruptcy (which is commonly referred to as a wage earners bankruptcy). As such, you need to know what to expect during the chapter 7 bankruptcy process.

During the chapter 7 bankruptcy process:

• Your non-exempt assets will become part of a bankruptcy sale. This means most of your possessions, with the exception of some equity in your home, a limited amount of personal possessions and your retirement accounts, are going to be sold
• The money that is generated by the bankruptcy sale will go to the trustee, who will distribute it among the creditors to whom you owe money
• The balance that you still owe will be forgiven, provided the debts are eligible (most debts are, including personal loans, credit cards and medical debt; student loans, unpaid child support and back taxes are not(. 

This is different from a chapter 13 because a chapter 13 involves no asset seizure and requires you to enter into a repayment program... something you won't be able to do with no income. You do have to qualify for a chapter 7 by proving you make below the Illinois median or by passing a means test, but with no income at all coming in, you should easily be able to prove your earnings are below the median.

To get help filing bankruptcy in Illinois, you should strongly consider speaking with a lawyer.