Bankruptcy Exemptions in Illinois
What property you can keep in bankruptcy in Illinois: homestead, vehicle, wildcard and retirement exemptions, and whether you can choose the federal exemptions.
Short answer: Illinois filers must use Illinois exemptions: residents "shall be prohibited from using the federal exemptions provided in Section 522(d)," except as otherwise permitted by Illinois law. 735 ILCS 5/12-1201
| State or federal exemptions | Illinois filers must use Illinois exemptions: residents "shall be prohibited from using the federal exemptions provided in Section 522(d)," except as otherwise permitted by Illinois law. Source: 735 ILCS 5/12-1201 |
|---|---|
| Homestead exemption | $50,000 per individual in a home (farm or lot and buildings, condominium, cooperative or personal property such as a mobile home) occupied as a residence. If two or more people own the property, each person's exemption is limited to their proportionate share of $100,000 based on percentage of ownership. No acreage limit is stated. |
| Car exemption | The debtor's interest in any one motor vehicle, up to $3,600. Source: 735 ILCS 5/12-1001(c) |
| Wildcard exemption | Equity in any other property up to $4,000, of which $1,000 is an automatic exemption under 735 ILCS 5/12-1001.1. |
| Retirement accounts | A debtor's interest in, or right to payments from, a retirement plan is exempt if the plan is intended in good faith to qualify under the Internal Revenue Code or is an Illinois Pension Code public employee plan. Covered plans include pension, profit-sharing and similar plans, self-employed and SEP plans, government and church plans, and IRAs. Source: 735 ILCS 5/12-1006(a)-(b) |
| Wages | A wage deduction order can take no more than the lesser of 15% of gross weekly pay or the amount by which weekly disposable earnings exceed 45 times the federal or Illinois minimum hourly wage (whichever is greater). This is the garnishment limit; it is not a separate bankruptcy-specific exemption. Source: 735 ILCS 5/12-803 |
More Illinois bankruptcy
FAQ
Can you use the federal bankruptcy exemptions in Illinois?
Illinois filers must use Illinois exemptions: residents "shall be prohibited from using the federal exemptions provided in Section 522(d)," except as otherwise permitted by Illinois law.
How much home equity is protected in bankruptcy in Illinois?
$50,000 per individual in a home (farm or lot and buildings, condominium, cooperative or personal property such as a mobile home) occupied as a residence. If two or more people own the property, each person's exemption is limited to their proportionate share of $100,000 based on percentage of ownership.
Can I keep my car in bankruptcy in Illinois?
The debtor's interest in any one motor vehicle, up to $3,600.
Does Illinois have a wildcard exemption?
Equity in any other property up to $4,000, of which $1,000 is an automatic exemption under 735 ILCS 5/12-1001.1.
Are retirement accounts protected in bankruptcy in Illinois?
A debtor's interest in, or right to payments from, a retirement plan is exempt if the plan is intended in good faith to qualify under the Internal Revenue Code or is an Illinois Pension Code public employee plan. Covered plans include pension, profit-sharing and similar plans, self-employed and SEP plans, government and church plans, and IRAs.
Are wages protected in bankruptcy in Illinois?
A wage deduction order can take no more than the lesser of 15% of gross weekly pay or the amount by which weekly disposable earnings exceed 45 times the federal or Illinois minimum hourly wage (whichever is greater).
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.