Does Illinois have its own set of bankruptcy exemptions?

In Illinois, as in any state, specific state-mandated laws dictate what assets a person filing for bankruptcy may keep exempt from the process. Those properties and value amounts may be different from federal guidelines, and you may be able to choose whether to apply federal or state exemptions. Please note, however, that the values and the rules themselves can change over time, so you should consult a bankruptcy lawyer to ensure that you are receiving updated information.

Illinois Bankruptcy Exemptions

Bankruptcy exemptions in Illinois apply when an individual is filing for Chapter 7 bankruptcy. Since a Chapter 7 bankruptcy requires you to turn over many of your assets and possessions for sale, understanding the exemptions is key to understanding what you will be able to keep during this process. The Illinois bankruptcy exemptions include: 

• Homestead Exemption: This exemption is for real and/or personal property – land, houses, farms, mobile homes, etc. up to $15,000 in value for an individual or $30,000 for a married couple.
• Vehicle Exemption: This exemption allows you to keep vehicles valued at up to $2,400.
• Tools of the Trade Exemption: You may keep up to $1,500 worth of job equipment.
• Wild Card/ Other Exemption: This exemption protects up to $4,000 of personal property such as family photos, clothing, books, health equipment, and other such items of your choosing.
• Other exemptions in Illinois: These include insurance, which will cover at least the value of payouts to dependents, and may also factor in the cash value of some policies. Alimony, child support, public assistance, retirement and pension benefits, etc. are all considered exempt as well.

Getting Help with Bankruptcy Exemptions

Bankruptcy exemptions change regularly, and you may also qualify for additional exemptions depending on your personal circumstances and financial state. As such, before declaring bankruptcy, it is imperative that you consult a lawyer to determine the impact that a bankruptcy will have on your assets, and to decide if a Chapter 7 bankruptcy is right for you.