Common State Exemptions for Chapter 7

When filing for Chapter 7 bankruptcy in Illinois, you must use the state’s exemption system rather than choose between it and the federal system. Here are some common Illinois bankruptcy exemption statutes:     – 735-5/12- 1001 – Motor vehicle (up to $2,400), health aids, clothing, family pictures, school books, Bibles, personal injury compensation (up to $15,000), wrongful death compensation, proceeds from exempt property sales, health/disability benefits, alimony/child support, and “tools of the trade” up to $1,500.     – 735-5/12- 803 – Either 85% of earned unpaid wages or 45 times the state or federal minimum wage(whichever is higher). Note: some judges may not allow this exemption.     – 11 U.S.C. § 522 – Tax-exempt retirement accounts (401(k)s, 403(b)s, denied benefit plans, SEP and SIMPLE IRAs, and profit-sharing and money-purchase plans.     – 305-5/11- 3; 735-5/12- 1001(g)(1) – Assistance for aged, blind, and disabled, public assistance, earned income tax credit, and child tax credit (for future payments).     – 735-5/12- 1001 – Social Security, veterans’ benefits, crime victims’ compensation, and unemployment compensation.     – 820-305- 21 – Worker’s compensation.     – 215-5/238 – Life insurance and annuities.If you are struggling financially and considering filing for Chapter 7 bankruptcy, contact an experienced bankruptcy attorney today for a free consultation.