Filing for Bankruptcy in Illinois

Bankruptcy filing law in Illinois differs from laws in other states. Bankruptcy is federal law, and most states have similar procedures on handling chapter 7 and chapter 13 bankruptcies. The biggest difference between bankruptcy in Illinois and other states is the property that is exempt or protected from creditors. Some states allow use of a federal exemption, while bankruptcy filing law in Chicago IL and the rest of Illinois applies their own exemption statutes to all of the property in a bankruptcy case. With 5 convenient locations in Illinois (Schaumburg, Chicago, Warrenville, Waukegan, Joliet) that deal with bankruptcy filing law, Chang & Carlin can help you solve your bankruptcy and debt issues.

Some of the property exemptions under bankruptcy filing law in Illinois are listed below:

Homestead exemption refers to the house that you live in. We can use this exemption if you are filing for bankruptcy in Illinois to protect up to $15,000 in equity in your house per person. That means that a husband and wife filing for bankruptcy in Chicago, Illinois (IL) could use this exemption to protect $30,000 total as long as they live in the house in question.

Bankruptcy filing law in Illinois protects $2,400 in value of any one motor vehicle listed in your U.S. federal bankruptcy. Additionally, if you file the bankruptcy with a spouse it is possible to combine vehicle exemptions to protect up to $4,800 in vehicle equity as long as both parties are on the title to the car.

This bankruptcy exemption protects 100% of your interest in various personal items such as your clothing when filing for bankruptcy in Chicago or Illinois (IL).

This Illinois exemption protects any payment under a life insurance contract that insured the life of an individual of whom you were a dependent, to the extent reasonably necessary for your support or the support of your dependent(s).

Illinois law can prevent creditors from touching the proceeds of your hard-earned retirement plan. Anything from stock bonuses, pensions, profit sharing plans and annuities may be exempt as long as it can be determined that your savings are in a qualified retirement plan.

This is a useful exemption that protects up to $1500 of the tools and books you use in your profession.

Bankruptcy filing law in Illinois protects 100% of compensation you receive under Illinois workers' compensation laws. In Illinois, workers' compensation cases are 100% exempt. If you are injured while working then that is money you deserve and creditors will be prevented from reaching those funds.

Using the Wildcard Exemption in your U.S. federal bankruptcy case, Chang & Carlin, LLP can protect up to $4000 ($8000 in a joint case) of any type of personal property. Anything you own that has equity in excess of the above Illinois bankruptcy exemptions can be protected under bankruptcy filing law in Illinois.