Legal Question in Bankruptcy in Illinois

What is Exempt?

I have a workers compensation claim pending.

a. Can I claim bankrupcy if my creditors know I will someday have the money to pay them back?

b. What about credit cards my ex-wife has with me as co-signer, should they be claimed also to prevent future action against me?


Asked on 9/19/01, 7:02 pm

2 Answers from Attorneys
Bruce Buckrop Bruce Buckrop

Re: What is Exempt?

WORKERS COMPENSATIONS BENEFITS ARE EXEMPT IN ILLINOIS, CREDITORS CANNOT OBJECT ON THAT BASIS/ CREDIT CARDS ALONG WITH ALL DEBTS MUST BE LISTED IN EVERY BANKRUPTCY, PEOPLE KEEP SECURED DEBT BY RE-AFFIRMING THE DEBT WITHIN THE CONFINES OF BK LAW

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Answered on 11/15/01, 5:24 pm
Lawrence A. Stein Aronberg Goldgehn Davis & Garmisa, LLC

Re: What is Exempt?

The proceeds from your workers compensation claim are exempt from attachment by your creditors, so you can file bankruptcy without turning over that claim, or its proceeds, to your creditors. You can list the accounts with your ex-wife as contingent liabilities in your bankruptcy filing and seek to discharge your obligations on those accounts. You should of course hire a bankruptcy lawyer to discuss the specifics of your circumstance before acting on this advice. Call me if you like.

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Answered on 11/06/01, 11:38 am


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