Unique Exemptions for Chapter 7

For Chapter 7 bankruptcy, Illinois provides its own state exemptions instead of the standard federal exemptions. Here are a few types of Chapter 7 exemptions under Illinois law:– Alimony, support, and maintenance – You may exempt an amount which is “reasonably necessary” for support in any of these categories.– Life insurance proceeds – This protects a payment in a life insurance contract for a person of whom you were a dependent, and protects to an extent that is “reasonably necessary” for support.– Public assistance, worker’s compensation, pension, and retirement benefits – All four of these categories can be 100% exempt.– Qualified retirement plan exemption – This protects your retirement plan (if it qualifies) from creditors, including stock bonuses, annuities, and profit-sharing plans.– Trade implements – This protects up to $1,500 of your professional “tools of the trade.”– Unemployment compensation – Up to 100% of your unemployment compensation may be exempt except for particular child support claims.– Veteran’s benefits – These benefits are 100% exempt.– Wildcard exemption – This protects up to $4,000, or $8,000 in a joint filing, of personal property.If you are struggling financially and considering filing for Chapter 7 bankruptcy, you’re not alone. Contact an experienced bankruptcy attorney today for a free consultation.