James E. Ford Attorney at Law
The Debt Relief Clinic
1103 Public Square
Benton, Illinois 62812
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions, the trustee may elect to liquidate this asset and distribute the proceeds to your creditors.
Illinois Property Exemptions
The Illinois exemptions chart details the property you can exempt or protect from creditors when you file bankruptcy. You may exempt any property that falls into one of the exemptions categories, up to the dollar amount listed. You will be able to keep this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-Dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions unless otherwise noted.