Common Questions About Bankruptcy

What Possessions Can I Keep After Filing for Chapter 7 Bankruptcy?

Exemptions for Liquidation Bankruptcy in Illinois

Many debtors often have a lot of questions and concerns about what they can keep and what they cannot under Chapter 7. Our Chicago lawyers are here to guide you through the various exemptions. We can look at your situation and tell you exactly what you can expect.

Under federal bankruptcy laws, certain assets are exempt and cannot be taken from you when you file for bankruptcy protection. Every state has a different set of "exemptions."

In the State of Illinois, a debtor has certain exemptions that every person filing can claim:

  • Your residence or homestead at a value of $15,000
  • Your clothing, books, and personal property.
  • One vehicle.
  • The tools of your trade, professional books or implements.
  • The proceeds or cash value of your life insurance policies as well as annuity contracts that are payable to your dependents.
  • Benefits from Social Security, UI, public assistance, veteran's benefits, disability benefits and illness benefits.
  • Alimony or maintenance income.
  • Awards received for reparation for victims of crime.
  • Wrongful death compensation paid to the debtor after losing support when a loved one dies.
  • Injury awards paid to you or to a person who supported you.
  • Restitution payments of various types.
  • 85% of your gross earnings or your disposable earnings equal to 45 times the federal minimum hourly wage, whichever is higher.
  • 100% of your retirement funds.

Let Us Counsel You in Your Unique Situation!

Your situation is unique. You may have purchased a home and now cannot keep up with the payments. If you want to defend against foreclosure, your individual case must be carefully reviewed to determine the best course of action. It may be of great benefit to file Chapter 13 so you can avoid losing your home.

At Smith Ortiz, P.C., our Chicago attorneys have worked with people in all walks of life, and assisted them to sort out serious financial problems and get their lives back on track. We have seen that most people lose absolutely nothing other than debt. You owe it to yourself to find out about filing for bankruptcy, or to discuss the alternatives with us. Our objective is to help our clients get their lives back, free from the stress of debts they cannot pay. Call us now for more information about your individual financial situation and the best way to solve it.

Contact us at Smith Ortiz, P.C. for more information about what you can keep in bankruptcy.