Maximizing Your Property Exemptions
What Can I Keep After Filing?
Some people think that if they file for bankruptcy, they will lose everything they have. This is simply not the case. While the bankruptcy laws allow a bankruptcy trustee to take the assets of a debtor in satisfaction of a debt, there are generous exemptions (or shields) available to protect property. These enable most clients to keep all of their property.
At the Bankruptcy Clinic, PC, we understand bankruptcy exemptions, how they are applied, and how the law interprets them. We work to help our clients keep as much of their property as possible. If you have unmanageable levels of debt, a Chapter 7 or Chapter 13 bankruptcy may be the right solution for you. Contact us to schedule a free consultation.
Illinois Property Exemptions
In January 2006, the State of Illinois doubled the exemptions allowed on property during bankruptcy. Some of the many property exemptions available to an individual are:
- Home equity — $15,000
- Motor vehicle equity — $2,400
- Tools of the trade — $1,500
- Wild card (any personal property) — $4,000
- Proceeds from a personal injury claim – $15,000
A married couple filing for bankruptcy can double these amounts so long as the items are jointly owned. Retirement assets, Social Security, disability, worker’s compensation, child support, alimony, unemployment, life insurance, clothing, school books, spiritual books, necessary medical devices and some other types of assets are completely exempt.
Protecting Your Property, Reducing Your Debts
If you have a fair amount of property that we cannot completely protect using these exemptions, a Chapter 13 bankruptcy may be the best solution. You can reduce or eliminate many debts, while keeping your home, vehicles and other property. Other people may be better off with a Chapter 7 bankruptcy, which completely eliminates unsecured debts
In a free consultation, a skilled attorney from our firm will review your financial situation and recommend the right solution for you. Take the first step toward a better life for yourself and your family. Call the Bankruptcy Clinic, PC today.
Free Consultation With a Lawyer
Contact us today for more information about your debt reduction options. We have offices in Carbondale, Marion and Mt. Vernon, Illinois, to serve you. Evening and weekend appointments are available.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.