What Property Can I Keep if I File for Chapter 7 Bankruptcy?

If you are thinking about filing for Chapter 7 bankruptcy, you likely know that this is a type of liquidation bankruptcy. What this means is that all non-exempt assets will be liquidated, and the money obtained from the liquidation of those assets will be used to repay creditors in order of their priority. Chapter 13 bankruptcy does not involve the liquidation of a debtor’s assets. When you are planning to file for Chapter 7 bankruptcy, you may be wondering: what property will I be able to keep if I file for liquidation bankruptcy? The good news is that Illinois law contains a variety of bankruptcy exemptions that can allow debtors to retain a wide range of assets even during and after a Chapter 7 bankruptcy case. Consider the following information from our Oak Park bankruptcy attorneys.

You Will Need to Use Illinois’s Bankruptcy Exemptions

The first thing to know when you are learning about which assets of yours will qualify for exemptions in your Oak Park bankruptcy case is that debtors in Illinois must use Illinois bankruptcy exemptions as opposed to federal exemptions. There are some states that permit debtors to choose between using the federal exemptions and the state exemptions, but Illinois is not one of those states. Accordingly, you will want to pay attention to the specific bankruptcy exemptions identified in the Illinois Compiled Statutes.

Homestead Exemption

Illinois has a homestead exemption of $15,000. What this means is that you can exempt up to $15,000 of equity in your home. Your home can include a house, a condominium, a cooperative, a mobile home, and other types of residential units.

Personal Property Exemptions

There are a variety of personal property exemptions under Illinois law. You can exempt up to $2,400 in a single motor vehicle. You will also have a “wildcard” exemption of $4,000, which you can use to exempt multiple assets of lesser value or a single asset that is worth $4,000. In addition, you will be able to exempt clothes you need to wear, family photos, school books, health aids, tuition trust funds, and other personal property.

Benefits Exemptions

Many different kinds of benefits are exempt when you file for Chapter 7 bankruptcy. For example, insurance benefits are exempt, as are pensions and retirement benefits. Public assistance benefits are also exempt, as are unemployment benefits and workers’ compensation benefits, as well as veteran’s benefits.

Contact a Bankruptcy Lawyer in Oak Park

The exemptions listed above are just some examples of the exemptions available under Illinois law. It will be extremely important for you to work with an Oak Park bankruptcy attorney who can go over the details of your bankruptcy case with you and help you to determine with certainty which assets are likely to be exempt. Some of the exemptions can be complicated, but a bankruptcy lawyer can look at your assets and identify those that will likely qualify as exempt under Illinois law. Contact the Emerson Law Firm today to learn more about Illinois bankruptcy exemptions and to get started on your Chapter 7 bankruptcy case.


See Related Blog Posts:

How Does Consumer Debt Collection Work?

How Does Bankruptcy Impact Foreclosures and Evictions?

Comments

Post a Comment

Popular posts from this blog

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti
Read more

Learning About Different Types of Wills

Whether you are young or old, single or married, wealthy or with limited financial means, healthy or dealing with a medical condition, it is important to make a will. Many people have incorrectly heard that wills are only necessary for particular people, such as those with a substantial amount of assets or for older adults in poor health. Yet wills are critical for adults of all ages, and an experienced Oak Park estate planning lawyer can help you to make one. Before you begin working with a lawyer on a will, you might start conducting your own research into wills in Illinois and the requirements for a valid will. In so doing, you are likely to come across information about many different types of wills, and you are probably going to wonder whether you will need more than one kind of will. In short, there are different terms that can be used to describe the form or function of a will, as well as some distinct types of wills. Our Oak Park estate planning attorneys can explain in more
Read more

Younger Parents Need an Estate Plan

It is critical for younger parents to have an estate plan, even if they know they are healthy and do not anticipate that anything will happen in the near future. Much too often, younger parents assume that they can wait until they are older to consider estate planning or until there is a health-related reason to begin the estate planning process. Yet estate planning is critically important for parents who have minor children. While estate planning is important for adults of all ages, it can allow parents to make important decisions about who will care for their children in the event that they become unable to do so themselves. Our Oak Park estate planning lawyers can explain in more detail. Naming a Guardian for Your Minor Children in Your Will Most importantly for younger parents, making a will allows you to name a guardian who can care for your child in the event of your unexpected death. Nobody anticipates a deadly accident or a sudden situation in which there is a need for another
Read more