How Does a Homestead Exemption Work?
The term “exemption” is extremely important for any individual or married couple considering bankruptcy and is particularly important in Chapter 7 bankruptcy cases since exemptions allow debtors to exempt assets from liquidation. If you own a home in the Oak Park area and you are considering bankruptcy, it will be essential for you to learn more about the homestead exemption and how it works in Illinois. While the term “homestead” might seem old-fashioned or inapplicable to any assets you might currently own, the term actually refers to your primary residence (such as your home or your condominium). How does the homestead exemption work under Illinois law ? Our Oak Park bankruptcy attorneys can explain. Homestead Exemption Generally The general point of a homestead exemption is to allow a debtor to exempt a certain amount of equity or interest they have in their primary residence. Each state has its own homestead exemption. Some states permit debtors who are filing for bankruptcy to c...