Court Allows Illinois Debtor to Keep Rare Book of Mormon

When you file for Chapter 7 bankruptcy—a form of bankruptcy also known as liquidation bankruptcy—you are largely prohibited from keeping any property that is not exempt. However, sometimes the decisions of a bankruptcy court can be surprising, especially to concerned debtors. According to a recent article in the St. Louis Post-Dispatch, an appeals court ruled that a debtor’s rare 1830 edition of a Book of Mormon was an item that she was allowed to keep.
How can a debtor be permitted to keep an extremely valuable rare book? In short, Illinois bankruptcy exemptions include “a Bible.” To better understand the bankruptcy court’s decision, we should take a closer look at the article and specific Illinois exemptions for personal bankruptcy.
Debtor Permitted to Keep Her Scarce Bible Under Bankruptcy Exemptions
The debtor in this case, Anna F. Robinson, filed for Chapter 7 bankruptcy in 2013. She had about $23,000 in debt, and she knew that much of her property, aside from that which fell under Illinois bankruptcy exemptions, would have to be sold to help pay back her debts. One of Robinson’s possessions at the time of filing was an 1830 Book of Mormon—a very rare book that is currently worth “tens of thousands of dollars,” according to the article.
The value for rare Bibles such as this one should not come as a surprise, given that a similar 1830 Book of Mormon—although in better condition and with a clearer provenance than the copy owned by Robinson—was valued between $75,000 and $100,000 on a 2014 episode of PBS’s Antiques Roadshow. Robinson found her book in 2003 while she was cleaning a library in Illinois. Robinson knew that Illinois law allows one bible to be exempt during bankruptcy liquidation, but she did not know if her valuable bible would count.
The bankruptcy trustee asked the court for permission to sell the valuable bible, noting that Robinson owned other copies of the Book of Mormon. The bankruptcy court agreed with the trustee, citing the intent and purpose behind the bible exemption, which is “to protect a bible of ordinary value so as not to deprive a debtor of a worship aid.” However, the 7th Circuit U.S. Court of Appeals disagreed. The appellate court ruled that “the plain wording of the Illinois personal property exemption statute” permits Robinson to keep the bible, underscoring that the Illinois legislature “did not intend to set a dollar value limitation on a religious text.”
The court also emphasized that having more than one Book of Mormon should not make a difference in terms of the exemption, which is not intended to “limit Ms. Robinson to one Book of Mormon of negligible monetary value.”
Illinois Bankruptcy Exemptions and Valuable Belongings
The debtor’s 1830 Book of Mormon is one of only 5,000 first editions printed. Given that the Court of Appeals found that the “Bible” exemption includes such valuable objects, could other debtors also keep rare and valuable property through the exemptions after filing for Chapter 7 bankruptcy?
By and large, the Illinois exemptions for personal property do not leave a lot of room for rare or valuable objects that are not bibles. The exemptions specifically states that a bible and school books qualify as exempt personal property, along with family photos and necessary clothing. As you might imagine, there are few family photos or pieces of necessary apparel that might be as valuable as a rare 1830 Book of Mormon. But what about a particularly valuable school book? Such a question has not yet been addressed.
In the meantime, if you have questions about exemptions and filing for bankruptcy in Illinois, you should reach out to an experienced Oak Park bankruptcy attorney. An advocate at our firm can answer your questions today. Contact the Emerson Law Firm to learn more.
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