What Property You Can Keep in Illinois

Most people realize that bankruptcy does not force you to give up everything. But what exactly can you keep?  You might be able to keep your house and your auto, but it depends on the equity.  In Illinois, with a “homestead exemption” you can protect your house, and are allowed to keep up to $15,000 of equity in the property (this doubles for a couple).   In terms of your car, you are allowed to protect up to $2,400 of the vehicles value.  In many instances, it is also possible to keep paying on an existing car loan after the bankruptcy proceedings.

In Illinois, there are also entitlements and other payments made to you that are excluded from the proceedings and you get to keep these.  This includes money you are receiving from a workers’ compensation claim, any disability payments, unemployment, social security, veterans’ benefits, retirement plans, life insurance as well as personal injury and wrongful death settlement/verdict money.  You are also allowed to keep any other miscellaneous personal property up to $4,000  in value with the “wildcard exemption”.

 

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