The Illinois bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Illinois. 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 and the equity is covered by your exemptions, you may elect to keep making payments on the loan and 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 proceeds. 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.
When you file bankruptcy in Illinois you may also 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 $15,000; sale proceeds exempt 1 year from sale | 735-5/12-901, 735-5/12-906 |
Homestead exemption after death or desertion of one spouse for benefit of remaining spouse and/or minor children - (Limit 7,500/7,500) | 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) |
For more information on filing bankruptcy in Illinois explore Illinois Bankruptcy Law.
