Legal Question in Bankruptcy in Illinois

Home Exemption in Illinois

I filed Chpt 13 (which unfortunately is now dismissed due to my unemployement)

At the time of filing, however, my attorney said I could not file Chpt 7 as I had too much equity in my home and if I filed Chpt 7 I would lose it.

I am now reading that Illinois is an exempt state, and a friend of mine told me (prior to my filing) that her neighbor was allowed to file Chpt 7 and she owned her house fully (no mortgage)

How/why could this other person not need to file Chpt 13 when I had to, and is my lawyer correct that I couldn't have filed Chpt 7 without losing my home? I think he should have filed with the exemption.

If any other creditors come after me since it's dismissed, this would be good information to know in case I have to file again.

Thanks for any help.

--name removed--J. Deamer


Asked on 2/04/03, 1:00 pm

1 Answer from Attorneys
Thaddeus Hunt Law Offices of Thaddeus Hunt

Re: Home Exemption in Illinois

Illinois allows a homestead exemption in the amount of $7,500 per individual filer. There are very few states that allow for an exemption for the entire home.

The question of whether you can file depends on how much equity is in your home. An attorney can work with the exemptions to perhaps make it possible to file bankruptcy.

Please call me at (847) 223-4410 and we can see if I can be of service.

Best regards,

Thaddeus J. Hunt, Esq.

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Answered on 2/04/03, 1:22 pm


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