Illinois, IL Bankruptcy Exemptions

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The Essential Illinois Bankruptcy Information Guide

Illinois, IL Bankruptcy Exemptions

BANKRUPTCY EXEMPTIONS ARE NOTAVAILABLE.
All law references are to Illinois Bankruptcy Code.

All property of the debtor at the time of the filing for bankruptcy (and certain other property to be received in the future) becomes the property of the bankruptcy estate once bankruptcy is filed. This means that the bankruptcy trustee will take control of this property for purposes of satisfying the creditors. HOWEVER, there is certain property which is either excluded or exempt which the debtor will be able to keep. Property or asset exemption are determined based upon your specific situation, personal income and the individual laws of your state.

The best way to determine which property you will be entitled to keep requires a detailed analysis of your unique and personal situation. Although the following Federal and State Bankruptcy Asset Exemption is provided for your information, we highly recommend Finding a Good Bankruptcy Attorney to help guide you through the Bankruptcy Process.

Illinois Bankruptcy Exemptions

ASSET	EXEMPTION DESCRIPTION	LAW SECTION
HOMESTEAD	Real or personal property including a farm, lots, buildings, condos, co-ops or mobile homes to $15,000	735-5/12-901
	Sale proceeds exempt 1 year from sale	735-5/12-906
	With some limitations, Illinois recognizes tenancy by the entirety	750-65/22
	Spouse or child of deceased owner may claim homestead exemption	735-5/12-902
PERSONAL PROPERTY	Bible, family pictures, schoolbooks and needed clothing	735-5/12-1001(a)
	Health aids	735-5/12-1001(e)
	Motor vehicle to $2,400	735-5/121001
	Personal injury recoveries to $15,000	735-5/12-1001
	Proceeds of sold exempt property	735-5/12-1001
	Wrongful death recoveries needed for support	735-5/12-1001(h)(2)
	Pre-need cemetery sales funds, care funds, and trust funds.	235-5/6-1
	Prepaid tuition trust funds.	110-979/45(g)
	Any other personal property up to $4,000 (not including wages).	735-5/12-1001
INSURANCE	Fraternal benefit society benefits	215-5/299.1a
	Health or disability benefits	735-5/12-1001(g)(3)
	Homeowners’ insurance proceeds for destroyed home, to $15,000	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 needed for support	735-5/12-1001(f), (g)(3)
MISCELLANEOUS	Alimony, child support needed for support	735-5/12-1001(g)(4)
MISCELLANEOUS	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 and IRAs	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
	Tax exempt retirement accounts. Traditional IRAs and Roth IRAs up to $1,095,000 per person.	11 U.S.C. § 522
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	Tools, books, and implements of trade up to $1,500.	735-5/12-1001(d)
WAGES	Either a minimum 85% of earned but unpaid wages or 45 timest the higher of the state and federal minimum hourly wage, whichever is greater. Judge may approve more for low income debtor.	740-170/4

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