Exemptions in Illinois Bankruptcy Cases

When filing for bankruptcy in Illinois, you must follow the state laws regarding exempt property. This is property and assets which cannot be used by the bankruptcy court in your case. Such property includes your home, vehicle, personal belongings, household goods, pensions and more. If you are filing for Chapter 7, your exempt property cannot be liquidated by the court to pay your debts. If you are filing for a Chapter 13, your exemptions will play a role in the amount you will be required to pay unsecured creditors through your repayment plan with the bankruptcy court.

If the value of a specific property or asset is equal to or less than what the state exemption amount is, you will be allowed to keep that asset. For instance, if the vehicle exemption totals $5,000 for your state and your vehicle is worth $4,000 you will be allowed to keep it. If your vehicle is worth much more than $5,000 then it may be sold by the court with the cash proceeds (less the $5,000 exemption amount which you would retain) used to pay your creditors. Illinois has a homestead exemption of up to $15,000 and vehicle exemption of up to $2,400. The rules for homestead exemptions can be complicated, which is why it is important to get knowledgeable legal help from an experienced bankruptcy attorney.

Get Help from a Chicago Bankruptcy Lawyer

If you are facing overwhelming debt and are subject to the duress of this mounting problem as well as continual creditor harassment, bankruptcy may be the answer to your situation. Understanding how bankruptcy works, what its advantages and disadvantages are, and how best to approach your debt scene is essential. At Glanzer & Associates, P.C. you can sit down and discuss your case with an attorney who deals with such situations on a daily basis. Mr. Glanzer has helped innumerable clients throughout the Chicago area with debt relief solutions, including Chapter 7 and Chapter 13 bankruptcy filings.

Because bankruptcy can be a complex matter, subject to many laws and regulations and the particulars of each filer's financial scene, it is best to ensure that your case is handled properly and thoroughly by a legal professional who is fully competent in this field. Contact Mr. Glanzer’s firm to schedule a free consultation with him to learn more about how bankruptcy applies to you.