You Won’t Lose Everything
When your debts are mounting and you simply see no way to pay them, you’ll probably consider bankruptcy. You’ll also probably worry about what you’re allowed to keep when you declare bankruptcy. Whether you file for Chapter 7 or Chapter 13 bankruptcy, the list of exemptions is the same; instead, the difference is what happens with your non-exempt property. In a Chapter 7 bankruptcy, the trustee may liquidate your non-exempt property to pay your creditors; in a Chapter 13 bankruptcy, you must pay off the non-exempt amount in order to have your plan approved by the court. If you are considering bankruptcy in the Chicago area, don’t hesitate to discuss your options promptly with an experienced Chicago bankruptcy lawyer. Here is a partial list of the bankruptcy exemptions allowed under Illinois bankruptcy laws; a good bankruptcy lawyer can help you determine how best to protect yourself using these exemptions:
- – Real Estate: The homestead exemption is $15,000 of equity in a house, mobile home, or condominium that is your primary residence ($30,000 for a married couple).
- – Income: Exemptions include Social Security, unemployment insurance, public aid, and veterans’ benefits; disability, illness, or unemployment benefits from an insurance company or employer; and alimony, maintenance, and support payments. As to wages, an employer may not deduct from your weekly pay the first $337.50 (45 times the $7.50 state minimum wage). If your weekly wages exceed that figure, an employer may not deduct more than 15 percent of your weekly gross wages.
- – Property: Pre-paid tuition trust funds, pre-paid cemetery sales or trust funds, clothes, healthcare aids and devices, certain property proceeds, and wrongful death awards are all exempt without regard to their value. You may also exempt $2,400 on the value of your personal vehicle, $15,000 of personal injury awards, and $1,500 of tools, books, and implements used in your work. Illinois additionally allows a general “wild card” $4,000 exemption on any personal property except wages.
This isn’t a complete list of bankruptcy exemptions and exceptions available in Illinois; rather, it’s to show you that bankruptcy is nothing to fear. You’ll be able to keep your most important property and possessions. If your debts are mounting and you’re in or anywhere near Chicago, discuss your options at once with an experienced Chicago bankruptcy lawyer.
