Legal Question in Bankruptcy in Illinois

Re: Assets

Short answer -- Most filers keep their homes and the majority of their personal property without having to "sell" assets.

Essentially, in Illinois you are allowed to "exempt" certain property from the claims of creditors and this right is preserved in a bankruptcy proceeding. The easiest way to understand "exemptions" is to view the exemptions as the property a filer keeps in spite of filing for bankruptcy relief. A filer in entitled to keep up to $2,000 in any personal property of his/her choice such as cash and furniture. All necessary clothing, books and family pictures are exempt regardless of their value. An Illinois filer is permitted to exempt a automobile not to exceed $1,200 in value. The exemptions are numerous and detailed however, two other important exemptions effect many filers. A filer can exempt the equity in his/her home up to $7,500 and all of a filer�s 401K plan or similar qualified retirement account is exempt.

Exemptions relate to the equity you have in a particular item of property. In a technical sense if you owe more money than the property is worth (this happens frequently in the case of cars, computers and furniture)then there is no equity to exempt. And, as I have already mentioned some exemptions do not imposed a monetary limit. A good lawyer will guide you through the exemptions and request them for you in your bankruptcy case. The goal should be taking advantage of the strategy that will allow you to keep all or most of your property. You should know that the exemptions are available to each individual if both you and your spouse filed. (just double the amounts). I'd be happy to speak with you personally to discuss your case. Please call me toll free at (800) 303-0720

Re: Assets

The ch 7 trustee takes non exempt assets from you and sells them and distributes the proceeds under the law. You need to see an attorney to see what assets you have that are exempt from the trustee, and what you could sell or liquidate to maximize your exempt property.