Chapter 7 Bankruptcy Exemptions in Chicago: What Can You Keep?
Worried About Losing Your Assets in Chapter 7 Bankruptcy? Find Out What Exemptions are Available and What You Can Keep!
When you file for a Chapter 7 Bankruptcy, your assets are liquidated to pay your debts to creditors, leading to a full discharge of all discharge-able debt. You may imagine that this would mean you could lose everything with Chapter 7, but this is far from true. In the state of Illinois, you can protect some or all of your property with Illinois’ bankruptcy exemptions. What you can keep really depends on your assets.
Illinois requires debtors to use state exemptions, which means that the state has opted out of federal bankruptcy exemptions. This means that Chapter 7 Bankruptcy exemptions in Illinois are only permitted to exempt property using the state laws. Let’s take a look at the Chapter 7 Bankruptcy exemptions that are commonly used in Illinois:
Property That is Protected From Your Creditors in Bankruptcy Filings in Illinois
- Alimony, Support, and Maintenance Exemption: You may exempt the amount reasonably necessary for support.
- Clothing, Textbooks, Bible, Family Pictures Illinois Exemptions: This bankruptcy exemption protects 100% of your interest in various personal items such as your clothing when filing for bankruptcy in Chicago or Illinois.
- Illinois Homestead Exemption: Homestead exemption refers to the house that you live in. We can use this exemption if you are filing for bankruptcy in Illinois to protect up to $15,000 in equity in your house per person.
- Life Insurance Proceeds Illinois Exemptions: This Illinois exemption protects any payment under a life insurance contract that insured the life of an individual of whom you were a dependent, to the extent reasonably necessary for your support or the support of your dependent(s).
- Motor Vehicle Exemption: Bankruptcy filing law in Illinois protects $2,400 in value of any one motor vehicle listed in your U.S.. federal bankruptcy. Additionally, if you file the bankruptcy with a spouse it is possible to combine vehicle exemptions to protect up to $4,800 in vehicle equity as long as both parties are on the title to the car.
- Pension and Retirement Benefits Exemption: You may exempt 100% of your pension and retirement benefits.
- Public Assistance Exemption: All public assistance is 100% exempt.
- Qualified Retirement Plan Illinois Exemption: Illinois law can prevent creditors from touching the proceeds of your hard-earned retirement plan. Anything from stock bonuses, pensions, profit sharing plans and annuities may be exempt as long as it can be determined that your savings are in a qualified retirement plan.
- Trade Implements Exemption: You may exempt $1,500 in all tools of your trade, including professional books.
- Unemployment Compensation Exemption: You may exempt 100% of all unemployment compensation except for certain child support claims.
- Veteran’s Benefits Exemption: All veteran’s benefits are 100% exempt.
- Wages Exemption: You may exempt the following amount of your wages: 85% of your gross earnings; or 45 times the federal minimum hourly wage per week (whichever is greater).
- Wildcard Illinois Exemptions: This will protect up to $4000 ($8000 in a joint case) of any type of personal property. Anything you own that has equity in excess of the above Illinois bankruptcy exemptions can be protected under bankruptcy filing law in Illinois.
- Worker’s Compensation Exemption: All workers compensation is 100% exempt.
What Can You Keep in a Chapter 7 Bankruptcy? Find Out in a FREE Consultation!
Is Chapter 7 Bankruptcy the right choice for you? A lot rides on if you are found eligible in a means test, and the exemptions you’re eligible for. You can find out what you’ll be able keep in a free consultation with our Chicago bankruptcy attorneys. Living a debt-free life really is possible after Chapter 7 Bankruptcy discharge, but first you need to find out what it’s all about. At Suburban Legal Group PC, we provide a reasonable fee and convenient monthly payment plans to help you achieve your goal to be debt-free.
Request a Free No Obligation Chapter 7 Consultation Today to see if Chapter 7 is right for you. Your initial consultation has no fees and no strings attached. You’re under no obligation to move forward with us. It’s a no-risk situation!