Illinois Bankruptcy Exemptions

Illinois is an opt-out state, meaning you must use **Illinois**-specific exemptions when filing bankruptcy (with certain federal protections for Social Security, ERISA, etc.). Below is a **comprehensive list** of commonly used Illinois exemptions, along with statutory references. Verify amounts and details with an attorney or official statute, as laws can change or be interpreted differently.

Asset / Type of PropertyExemption DescriptionStatute / CodeNotes
HomesteadReal or personal property (farm, lot, building, condo, co-op, mobile home) up to \$15,000; sale proceeds exempt for 1 year.
Husband and wife may double to \$30,000 (see First Nat’l Bank v. Mohr).
735 ILCS 5/12-901, 5/12-906; 735 ILCS 5/12-902 (after death or desertion)After death or desertion, benefit remains for spouse/minor kids.
Bible, Family Pictures, Schoolbooks, Needed ClothingFully exempt if “necessary.”735 ILCS 5/12-1001(a)
Health AidsFully exempt.735 ILCS 5/12-1001(e)
Motor VehicleEquity up to \$1,200.735 ILCS 5/12-1001(c)
Personal Injury RecoveriesUp to \$7,500.735 ILCS 5/12-1001(g)(4)
Proceeds of Sold Exempt PropertyRemain exempt if converted into proceeds.735 ILCS 5/12-1001Usually must be kept separate and used promptly.
Title Certificate for Boat 12 ftStill subject to other exemptions.625 ILCS 45/3A-7
Wrongful Death RecoveriesExempt to extent needed for support.735 ILCS 5/12-1001(h)(2)
Fraternal Benefit Society BenefitsExempt from creditors.215 ILCS 5/299.1a
Health or Disability BenefitsFully exempt if “benefits” needed.735 ILCS 5/12-1001(g)(3)
Homeowners' Insurance ProceedsUp to \$7,500 if home is destroyed.735 ILCS 5/12-907
Life Insurance / Annuity Proceeds / Cash ValueIf beneficiary is insured’s child, parent, spouse or dependent. Also exempt if anti-creditor clause.215 ILCS 5/238; 735 ILCS 5/12-1001(f), (g)(3)
Alimony / Child SupportExempt if needed for support.735 ILCS 5/12-1001(g)(4)
Property of Business PartnershipExempt from partner’s individual creditors.805 ILCS 205/25
Civil Service EmployeesPension is exempt.40 ILCS 5/11-223
County EmployeesExempt retirement benefits.40 ILCS 5/9-228
Disabled Firefighters; Widows/ChildrenExempt benefits.40 ILCS 5/22-230
ERISA-Qualified BenefitsGenerally fully exempt from creditors.735 ILCS 5/12-1006
FirefightersExempt pension.40 ILCS 5/4-135, 5/6-213
General Assembly MembersExempt benefits.40 ILCS 5/2-154
House of Correction EmployeesExempt benefits.40 ILCS 5/19-117
JudgesExempt pension.40 ILCS 5/18-161
Municipal EmployeesExempt retirement benefits.40 ILCS 5/7-217(a), 5/8-224
Park EmployeesExempt pension.40 ILCS 5/12-190
Police OfficersExempt retirement/pension.40 ILCS 5/3-144.1, 5/5-218
Public EmployeesExempt benefits (including 5/12-1006).735 ILCS 5/12-1006
Public Library EmployeesExempt pension.40 ILCS 5/19-218
Sanitation District EmployeesExempt pension.40 ILCS 5/13-808
State EmployeesExempt pension.40 ILCS 5/14-147
State University EmployeesExempt pension.40 ILCS 5/15-185
TeachersExempt pension.40 ILCS 5/16-190, 5/17-151
Aid to Aged, Blind, Disabled, AFDCFully exempt.305 ILCS 5/11-3
Crime Victims’ CompensationFully exempt.735 ILCS 5/12-1001(h)(1)
Restitution for WWII Relocation (Aleuts, Japanese Americans)Fully exempt.735 ILCS 5/12-1001(h)(5)
Social SecurityFully exempt.735 ILCS 5/12-1001(g)(1)
Unemployment CompensationFully exempt.735 ILCS 5/12-1001(g)(1), (3)
Veterans’ BenefitsFully exempt.735 ILCS 5/12-1001(g)(2)
Workers’ CompensationFully exempt.820 ILCS 305/21
Workers’ Occupational Disease CompensationFully exempt.820 ILCS 310/21
Implements, Books, Tools of TradeUp to \$750.735 ILCS 5/12-1001(d)
WagesMinimum 85% of earned but unpaid wages are exempt. Bankruptcy judge may allow more for low income.740 ILCS 170/4
Wildcard\$2,000 of any personal property, including wages.735 ILCS 5/12-1001(b)See In re Johnson, 57 B.R. 635 (N.D. Ill 1986).

Disclaimer

This list is for general informational purposes and may not reflect recent legislative updates or local court rulings. It does not constitute legal advice. Always consult a licensed Illinois bankruptcy attorney to confirm current exemption amounts and applicability to your situation.