Homestead

$15,000 of real estate or personal property that is occupied by the filer, including farm, lot & buildings, condo, co-op or mobile home.  If real estate or personal property is sold, the sale proceeds are exempt for one year. The spouse or child of a deceased owner may file for a homestead exemption. The State of Illinois recognizes, with some limitations, tenancy by the entireties (i.e. a form of joint ownership of property between spouses).

Personal Property

The following personal property may be exempt, either wholly or up to the dollar amount given:

• $2,400 of vehicles
• $15,000 of personal injury awards from lawsuits/settlements
• Proceeds of sold property that was exempt from seizure
• Awards from wrongful death lawsuits/settlements
• Health aids
• Bible, family pictures, schoolbooks & clothing
• Prepaid tuition trust fund
• Pre-need cemetery sales funds, care funds and trust funds
• Illinois College Savings Pool accounts invested over one year prior to filing, if below federal gift tax limit, or 2 years before filing if above the gift tax limit.

Insurance

• $15,000 of homeowners’ proceeds for destruction of home
• Life insurance proceeds to spouse or child of debtor-filer to amount required for support
• The following insurance may be wholly exempt:
  
  • Life insurance annuity proceeds or cash value if the beneficiary of the policy is a dependent of the insured [child, parent, spouse, other dependent]
  • Health/disability benefits
  • Fraternal benefits society benefits

Pensions (note: tax-exempt retirement accounts such as 401(k)s, 403(b)s, defined benefit plans, and traditional and Roth IRAs up to $1,095,000 are not covered by state law but ARE exempt under federal law)

• ERISA-qualified benefits and IRAs
• Pensions for the following occupations are exempt under IL law:
  
  • Civil service employees
  • County employees
  • Firefighters, disabled firefighters; widows and children of firefighters
  • General Assembly members
  • Correctional (jail/prison) employees
  • Judges
  • Municipal employees
  • Park employees
  • Public employees
  • Police officers
  • Public library employees
  • Sanitation district employees
  • State employees (including state university employees)
  • Teachers

Public Benefits

• Social Security
• Unemployment benefits
• Public assistance
• Aid to blind, elderly, disabled
• Crime victims’ compensation
• Veterans’ benefits
• Workers’ compensation
• Workers’ occupational hazard compensation
• Restitution payments to Japanese Americans and Aleuts because of relocation during WWII

Miscellaneous

• Wages: 85% minimum of earned but unpaid weekly wages or 45X federal minimum hourly wage (or state minimum wage, whichever is higher) – the bankruptcy judge is allowed to authorize bigger exemption for low-income filers
• $4,000 of any personal property (not including wages)
• Alimony and child support
• Property of business partnership