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Illinois Bankruptcy Exemptions
The Illinois bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments, the equity is covered by your exemptions, and you elect to keep making payments on the loan you generally can keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the assets. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
You also may use certain federal exemptions in addition to your Illinois exemptions.
ASSET
EXEMPTION DESCRIPTION
LAW SECTION
HOMESTEAD
Real or personal property including a farm, lot and building, condo, co-op or mobile home to $7,500; sale proceeds exempt 1 year from sale
735-5/12-901, 735-5/12-906
Spouse or child of deceased owner may claim homestead exemption
735-5/12-902
Husband and wife may double
First National Bank v Mohr 515 N.E. 2d 1356 (App. Ct. Ill. 1998)
PERSONAL PROPERTY
Bible, family pictures, schoolbooks and needed clothing
735-5/12-1001(a)
Health aids
735-5/12-1001(e)
Motor vehicle to $1,200
735-5/121001(c)
Personal injury recoveries to $7500
735-5/12-1001(g)(4)
Proceeds of sold exempt property
735-5/12-1001
Title certificate for boat over 12 feet
652-45/3A-7
Wrongful death recoveries needed for support
735-5/12-1001(h)(2)
INSURANCE
Fraternal benefit society benefits
215-5/299.1a
Health or disability benefits
735-5/12-1001(g)(3)
Homeowners' proceeds if home destroyed, to $7,500
735-5/12-907
Life insurance, annuity proceeds or cash value if beneficiary is insured's child, parent, spouse or other dependent
215-5/238
Life insurance policy if beneficiary is insured's spouse or chil
735-5/12-1001(f)
Life insurance proceeds if clause prohibits from being used to pay beneficiary's creditors
215-5/238
Life insurance proceeds needed for support
735-5/12-1001(f), (g)(3)
MISC.
Alimony, child support needed for support
735-5/12-1001(g)(4)
Property of business partnership
805-205/25
PENSIONS
Civil service employees
40-5/11-223
County employees
40-5/9-228
Disabled firefighters; widows and children fo firefighters
40-5/22-230
ERISA-qualified benefits
735-5/12-1006
Firefighters
40-5/4-135, 40-5/6-213
General assembly members
40-5/2-154
House of correction employees
40-5/19-117
Judges
40-5/18-161
Municipal employees
40-5/7-217(a), 40-5/8-224
Park employees
40-5/12-190
Police officers
40-5/3-144.1, 40-5/5-218
Public employees
735-5/12-1006
Public library employees
40-5/19-218
Sanitation district employees
40-5/13-808
State employees
40-5/14-147
State university employees
40-5/15-185
Teachers
40-5/16-190, 40-5/17-151
PUBLIC BENEFITS
Aid to aged, blind, disabled, AFDC
305-5/11-3
Crime victims' compensation
735-5/12-1001(h)(1)
Restitution payments on account of WWII relocation of Aleuts and Japanese Americans
735-5/12-1001(12)(h)(5)
Social security
735-5/12-1001(g)(1)
Unemployment compensation
735-5/12-1001(g)(1), (3)
Veterans' benefits
735-5/12-1001(g)(2)
Workers' compensation
820-305/21
Workers' occupational disease compensation
820-310/21
TOOLS OF TRADE
Implements, books and tools of trade to $750
735-5/12-1001(d)
WAGES
Minimum 85% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors
740-170/4
WILD CARD
$2,000 of any personal property
735-5/12-1001(b)
Includes wages
In re Johnson,
57 B.R. 635 (N.D. ILL 1986)
423 N. State St. , Litchfield, IL 62056
Tel: 217.324.2322 / Fax: 217.324.9397
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