Illinois State Exemption List
Under Illinois bankruptcy law you must use the Illinois State Exemption List. The Federal Exemption List can not be used. The goal of the exemption list is to allow the filer to keep enough assets to start over after bankruptcy. Certain states may require an individual to live in their state for a certain time period to use their state exemption list.
The following table summarizes the Illinois State exemptions that can be used for personal property and other assets in the bankruptcy petition. The following exemptions will identify personal property which will be protected and not part of the bankruptcy process. Unfortunately, not all your assets may have a matching exemption.
Prior to filing bankruptcy in Illinois, it is important to talk to a Illinois Bankruptcy Attorney who can help determine what assets or property you own which may be exempt. The following information is very general. It is important to talk to a Illinois Nankruptcy Attorney who is familiar with your financial situation.
|
Exemptions
|
Exemption Amount
|
Statutes
|
| 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 |
| |
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 |
| |
|
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 |
Miscellaneous |
Alimony, child support needed for support |
735-5/12-1001(g)(4) |
| |
Property of business partnership |
805-205/25 |
| 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 |
| Pensions |
Civil service employees |
40-5/11-223 |
| |
County employees |
40-5/9-228 |
| |
Disabled firefighters; widows and children of firefighters |
40-5/22-230 |
| |
ERISA-qualified benefits |
735-5/12-1006 |
| |
Civil service employees |
40-5/4-135, 40-5/6-213 |
| |
County employees |
40-5/2-154 |
| |
Disabled firefighters; widows and children of firefighters |
40-5/19-117 |
| |
ERISA-qualified benefits |
40-5/18-161 |
| |
Firefighters |
40-5/7-217(a), 40-5/8-224 |
| |
General assembly members |
40-5/12-190 |
| |
House of correction employees |
40-5/3-144.1, 40-5/5-218 |
| |
Judges |
735-5/12-1006 |
| |
Municipal employees |
40-5/19-218 |
| |
Park employees |
40-5/13-808 |
| |
Police officers |
40-5/14-147 |
| |
Public employees |
40-5/15-185 |
| |
Public library employees |
40-5/16-190, 40-5/17-151 |
| |
Sanitation district employees |
|
| |
State employees |
|
| |
State university employees |
|
| |
Teachers |
|
| 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 child |
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) |
| Wildcard |
$2,000 of any personal property |
735-5/12-1001(b) |
| Wages |
Minimum 85% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors |
740-170/4 |
| Tools of Trade |
Implements, books and tools of trade to $750 |
735-5/12-1001(d) |
***Certain debts such as mortgages, deeds of trust or tax liens will not be wiped out by bankruptcy. The lender will have the right to foreclose on you if you fail to pay your certain debt obligations. ***