Exemption amounts are important in bankruptcy cases. The exemptions are used to determine how much money you may have to pay to your unsecured creditors and how much property you are allowed to keep, depending on how you file and the particular circumstances of your case.
Chapter 7 bankruptcy is the form of bankruptcy most people first think of, the full discharge. In Chapter 7, the state exemption rules indicate you may keep certain property and money that does not have to be surrendered to the bankruptcy trustee. Watch our video explaining Chapter 7 bankruptcy.
Chapter 13 bankruptcies are used in reorganizing debt; where you pay a percentage of the amounts owed to creditors, and the exemption amounts control how much you may be required to repay to unsecured creditors, to whom you may owe debts that are not secured by an asset. Watch our video explaining Chapter 13 bankruptcy.
Illinois bankruptcy exemptions:
- Child Support and Spousal Maintenance
- Cemetery and Burial Funds
- Legal Claims for Negligence or Tortious Conduct
- Crime Victim’s Compensation
- Franchise, Permit and Licensing Funds
- Fraternal Benefit Society Benefits
- Homestead and Residential Property
- Insurance Benefits
- Motor Vehicles
- Personal Property
- Pension and Retirement Benefits
- Partnership-owned Property
- Public Assistance Benefits
- Trade Implements
- Unemployment Compensation
- Veterans Benefits
The amount you may be allowed to keep set aside from the bankruptcy case, Chapter 7 or 13, is set by the Illinois legislative branch and it can change from year to year. If you or someone you know had a bankruptcy case a few years back, it is likely some of the exemptions have changed since then.
Determining the exemptions you may claim can be very complicated and an experienced bankruptcy attorney is strongly recommended to navigate the complicated bankruptcy laws and procedures involved from the beginning of your case, to the discharge and termination of proceedings.
Joseph Wrobel, Ltd., works to educate clients and bring everyone bankruptcy and financial news they can use to better understand the laws and processes involved in consumer bankruptcy.
Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. To keep in touch and read about consumer finance news and stories you can “Like” the firm’s Facebook page and “Follow” Joseph Wrobel. Ltd. on Twitter. If you need immediate legal assistance, please call Joseph Wrobel, Ltd. by calling (312) 781-0996 to talk to an attorney today.