Legal Question in Bankruptcy in Illinois

Personal items

I am thinking about filing Chapter 7 bankruptcy. If I do, what personal, unsecured items purchased on credit (computer, TV, clothing, etc.) can I keep? Do I have to sell or give back personal, unsecured items purchased on credit that I still own money on? I know there are exemption amounts, how much are they and what can they be applied to? I also own a home and car, and would like to list those as secured debts.

Please advise. Thank you.


Asked on 2/04/02, 3:55 pm

2 Answers from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

Re: Personal items

It is difficult to give an accurate reply, as much has to do with your exemptions. However, I find it unlikely that you would have to give anything back.

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Answered on 2/05/02, 11:53 am
Bruce Buckrop Bruce Buckrop

Re: Personal items

Each state decides what their residents may keep in a bankruptcy, known as exemptions, Illinois law allows you $2000 in personal assets, and $1,200 equity in a car. Debtors usualy keep secured assets they want by re-affirming the debt.

A creditor is secured when merchandise they arranged for you purchase in their store, is pledged as security for the debt. VISA's Mastercards, Discover, ect. are not secured debts for the purchases, only places like Sears, Wards, Jewlers are usualy secured. Would be best to have your papers prepared by a lawyer to be sure you do not loose anything, that is not exempt but can be transferred and exempt in another form.

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Answered on 2/04/02, 5:22 pm


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