Illinois Bankruptcy Law Exemptions - Reference Table

Illinois Bankruptcy Law Exemptions

Omnibus Reference Table

Common Name		Statute				Description
Wild Card		735 ILCS 5/12-1001(b)				Can be applied to any personal property. $4,000 total per person. Can be split up in any way.
Motor Vehicle		735 ILCS 5/12-1001(c)				1 per person, $2,400. Cannot be split into sub-parts, but can be stacked, i.e., $2,400 or $4,800.  Not $2,000 and $400.
Homestead		735 ILCS 5/12-901				$15,000 for an individual $30,000 for married couple
Homestead (after death of spouse)		735 ILCS 5/12-902				A surviving spouse can continue to claim the decedent's homestead exemption for as long as he or she continues to live in the property; also applies for minor children until the children become 18.
Homestead Sale Proceeds		735 ILCS 5/12-906				Proceeds are exempt for one year after sale, unless reinvested in a new homestead.
Qualified retirement plan		735 ILCS 5/12-1006				Unlimited. Text:  " A debtor's interest in or right, whether vested or not, to the assets held in or to receive pensions, annuities, benefits, distributions, refunds of contributions, or other payments under a retirement plan is exempt from [...] seizure for the satisfaction of debts if the plan (i) is intended in good faith to qualify as a retirement plan under [IRS code] or  (ii) is a public employee pension plan created under the Illinois Pension Code [...].
Apparel, Bible, School books, family pictures		735 ILCS 5/12-1001(a)				Unlimited, but applies only to the "necessary" wearing apparel.
Tools of the Trade		735 ILCS 5/12-1001(d)				$1,500 per person. Applies to any implements, profession books, or tools of the trade.
Professional Prescribed Health Aids		735 ILCS 5/12-1001(e)				Case law interpreting this statute is very broad, and has included things like modified vehicles with wheelchair ramps.  Key is the "prescribed" part.
Life Insurance Policies				735 ILCS 5/12-1001(f)			Payable on death proceeds and the aggregate net cash value of life insurance policies and annuities payable to a spouse or dependent.  Applies only to dependents and spouses. Unlimited.  Protects cash value of policies. Applies even if the beneficiary is a trust, so long as the trust names a dependent or spouse as the primary beneficiary of the trust.
				215 ILCS 5/238			Almost word-for-word the same as 735 ILCS 5/12-1001(f), except does not include a trust-as-beneficiary language. Does Except any premiums paid in fraud of creditors
Social Security Benefits				735 ILCS 5/12-1001(g)(1)			Unlimited.  No subject to means testing either.
Unemployment Benefits				735 ILCS 5/12-1001(g)(1)			Unlimited.  Is subject to means testing as income.
				820 ILCS 405/1300			Unlimited.  Is subject to means testing as income.
Public Assistance Benefits				735 ILCS 5/12-1001(g)(1)			Unlimited.
Veteran's benefits.				735 ILCS 5/12-1001(g)(2)			Unlimited.
Disability, illness, or unemployment benefits				735 ILCS 5/12-1001(g)(3)			Unlimited.
Alimony, support, maintenance				735 ILCS 5/12-1001(g)			To the extent necessary for support of debtor and dependents.
Crime Victim's reparations				735 ILCS 5/12-1001(h)(1)			Unlimited; applies to any crime victim reparation law.
				740 ILCS 45/18			Generally redundant with 1001(h)(1).
Wrongful death payment				735 ILCS 5/12-1001(h)(2)			To the extent necessary for support, and only if debtor was a dependent of the decedent.
Life insurance proceeds				735 ILCS 5/12-1001(h)(3)			To the extent necessary for support, and only if debtor was a dependent of the decedent.
Personal Injury	735 ILCS 5/12-1001(h)(4)				$15,000 limit, for bodily harm
Restitution under Civil Liberties Act of 1988	735 ILCS 5/12-1001(h)				Related to WWII internment camps in United States.
	Note:				Under 1001(h),  money from the award is exempt for only 2 years, and property traceable to the award is limited for 5 years; i.e., the exemption sunsets.  Interest and appreciation are NOT exempt.
Crime Victim's Awards	735 ILCS 5/12-1001(i)				Crime victim awards are exempt; see 735 ILCS 5/2-2001.  This exemption applies specifically to Illinois law.
Illinois College Savings Pool	735 ILCS 5/12-1001(J)				Exempt, unless: (1)made with intent to hinder, delay, or defraud creditors; (2)Contributions with 1 year of bankruptcy, to the extent that they exceed the gift tax exclusion per IRS; (3) Contributions from 730 to 366 days pre-filing, in excess of the IRS gift tax exclusion at the time of contribution. Contributions
Proceeds from Sale of Exempt Property	735 ILCS 5/12-1001				Exemptions flow through to proceeds from sale of exempt property, unless the exempt property was purchased with intent to convert nonexempt property to exempt property.  Property acquired within 6 months of filing is presumed to have been acquired in contemplation of bankruptcy.
General Assembly Pension Benefits	40 ILCS 5/2-154				General exemption of income from collection or attachment.  Still subject to means-testing.
Police officer pension and disability benefits	40 ILCS 5/2-154				General exemption of income from collection or attachment.  Still subject to means-testing.
	40 ILCS 5/5-218
Firefighter, police retirement funds, annuities	40 ILCS 5/4-135				General exemption of income from collection or attachment.  Still subject to means-testing.
	40 ILCS 5/6-213
	40 ILCS 5/22-230
Municipal employee retirement fund			40 ILCS 5/7-217					General exemption of income from collection or attachment.  Still subject to means-testing.
			40 ILCS 5/8-244
City, state, county employee retirement funds			40 ILCS 5/8-244					General exemption of income from collection or attachment.  Still subject to means-testing.
			40 ILCS 5/9-228
			40 ILCS 5/14-147
Labor and retirement board employee retirement funds			40 ILCS 5/11-223					General exemption of income from collection or attachment.  Still subject to means-testing.
Park employee state benefits			40 ILCS 5/12-190					General exemption of income from collection or attachment.  Still subject to means-testing.
Sanitation district employee and trustee retirement funds			40 ILCS 5/13-213					General exemption of income from collection or attachment.  Still subject to means-testing.
			40 ILCS 5/13-805
State university employee retirement funds			40 ILCS 5/15-185					General exemption of income from collection or attachment.  Still subject to means-testing.
			40 ILCS 5/2-154
Teacher's retirement funds			40 ILCS 5/16-190					General exemption of income from collection or attachment.  Still subject to means-testing.
			40 ILCS 5/17-151
Judge's state retirement benefits			40 ILCS 5/18-161					General exemption of income from collection or attachment.  Still subject to means-testing.
Correctional employee pension benefits			40 ILCS 5/19-117					General exemption of income from collection or attachment.  Still subject to means-testing.
Public library employee pension benefits			40 ILCS 5/19-218					General exemption of income from collection or attachment.  Still subject to means-testing.
Fraternal benefit society benefits			215 ILCS 5/299.1(a)					General exemption of income from collection or attachment.  Still subject to means-testing.  Applies to income from charities and fraternal organizations.
Social services benefits (elderly, blind, disabled)			305 ILCS 5/11-3					General exemption of income from collection or attachment.  Still subject to means-testing.
Title certificate for a boat >12 feet			625 ILCS 45/3A-7(d)					"A certificate of title is not subject to garnishment, attachment, execution or other judicial process, but this subsection does not prevent a lawful levy upon the watercraft."
Property held in trust for debtor			735 ILCS 5/2-1403					Exempts the property of the trust from attachment.  The income from the trust or any property that passes out of the trust to the beneficiary debtor is subject to normal collection. Exempts only trusts created by people other than the debtor for the debtor's benefit. Exception for domestic support obligations. Spendthrift trusts are also exempt, but must be very specific in their creation.
Medical Malpractice receivable			735 ILCS 5/2-1716					Exempts periodic installments for future damages only.  Lump-sum payments are not exempt.
Retirement, pension benefits			735 ILCS 5/12-704					General exemption of income from collection or attachment.  Still subject to means-testing.
Wages and other earnings			735 ILCS 5/12-803					Regarding wage garnishment.  Wage garnishment is limited to 15% of the gross amount paid or the amount which the wages exceed 45 times the Illinois minimum wage, whichever is less. In other words, a debtor working 45 hours per week at minimum wage is effectively un-garnishable.
			740 ILCS 170/4
Worker's Compensation benefits			820 ILCS 305/21					General exemption of income from collection or attachment.  Still subject to means-testing.
Awards for occupational diseases			820 ILCS 305/21					General exemption of income from collection or attachment.  Still subject to means-testing.
Tenancy by the Entirety			11 USC § 522(b)(3)(B)					Homestead real estate held in tenancy by the entirety is exempt from attachment by non-joint creditors.
			735 ILCS 5/12-112
Social Security Benefits			42 USC § 407					Blanket exemption for all Social Security Act income and benefits.