Bankruptcy in Illinois
By Joseph P. Doyle
Aug. 8, 2011 2:53p
How Illinois Bankruptcy Laws Affect You
Bankruptcy is governed by the U.S. bankruptcy code, federal law which regulates the procedures for filing the various types of bankruptcy. Due to this, most state laws concerning bankruptcy are similar from state to state, closely following federal regulations. Beyond this, however, state laws as well as judicial precedents influence some of the aspects of filing for bankruptcy in Illinois. One of the most important factors that Illinois state law affects in the bankruptcy process lies in the exemptions available to you when filing. These exemptions decide the assets you can retain in a Chapter 7 filing or the percentage of debt that you must pay back when filing a Chapter 13 bankruptcy.
What are state exemptions in Illinois?
State exemptions include a homestead exemption, which is real or personal property, amounting to $15,000 for an individual and double that for a married couple. Under the homestead exemption, sale proceeds are exempt for one year. Other state exemptions include 85% of your earned but unpaid wages, $2400 for automobiles, and exemptions for other property, such as family pictures, textbooks, clothing, health aids, tools of trade, implements and books amounting to $1500. A wild card exemption of $4,000 is also allowed, which does not include wages.
Exemption laws do not protect secured property, such as homes secured by mortgages or automobiles secured by loans, if you continue to fail to make payments. A bankruptcy filing can temporarily halt a foreclosure or repossession, giving you some breathing room to reorganize your debt and catch up on payments.
Talk to a Chicago Bankruptcy Lawyer
Bankruptcy laws are complex and can be difficult to understand. If you are suffering from overwhelming debt in the Chicago area, it is smart to consult with a Chicago bankruptcy attorney who focuses on this area of law and can provide you with detailed and knowledgeable guidance about the specifics of your situation. You will find such an attorney at the law offices of Joseph P. Doyle, a bankruptcy lawyer who has concentrated his legal practice on bankruptcy for clients throughout Chicago and the surrounding suburbs and counties.
Attorney Doyle is dedicated to helping individuals and families who have gone into financial distress due to many causes, including the current recession, job loss, reduced wages, costly medical expenses, divorce, and runaway credit card debt. He understands the stress and anxiety involved in financial insolvency and the difficulty of facing such a problem. His firm is here to ensure that you fully understand and explore all of the legal solutions available to you for debt relief.
Contact Chicago bankruptcy attorney Joseph P. Doyle at his firm today if you are facing overwhelming debt in and around Chicago.