What are exemptions?

Exemptions in Chapter 7 Bankruptcy Law in Illinois refer to certain assets that a person can keep in order to protect them from creditors and the bankruptcy trustee. These assets are exempt from the bankruptcy process, meaning that the debtor can keep the assets instead of having to turn them over to the bankruptcy trustee for liquidation. Examples of exempt assets in Illinois include a homestead up to $15000; up to $2000 in personal property; up to $2000 in motor vehicle equity; health aids; personal injuries; pensions; public benefits; and certain tools of trade. Exemptions can also apply to wages, in the form of an exemption for a certain portion of earned wages, earnings from self-employment, and veterans’ disability payments. These exemptions vary by state, so it is important to check with a local attorney to determine what is exempt in your area.

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What are exemptions?

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