When you file for bankruptcy, whether it be through Chapter 7 or Chapter 13, you’re entitled to protect some of your property from being included as part of the bankruptcy estate, and subject to liquidation by your creditors. These are called exemptions. For people filing for bankruptcy in Illinois, the state of Illinois lists its own categories of exemptions to which debtors are entitled.
Included among these are:
Homestead exemptions of up to $15,000
Some items of personal property, including:
Motor vehicles up to $2,400
Clothing, school books, family pictures, personal injury settlements up to $15,000
85% of earned, but unpaid wages
401ks, IRAs and Roth IRAs
Public employee pensions
Social Security, unemployment, and workers comp benefits
Alimony and child support
Life insurance benefits, homeowners insurance benefits (up to $15,000)
Health and disability benefits, and a wildcard category of personal property up to $4,000.
Of course, these are only some of the exemptions that could be available to you. It is strongly recommended that you consult with a local bankruptcy attorney for Cook County or Lake County to go over your own personal situation.