Most bankruptcy advertising emphasizes that you can keep most of your personal belongings such as furniture, appliances and the contents of your home. This is largely true because of exemptions. In a bankruptcy or other collection lawsuit each debtor is entitled to certain exemptions, simply put, items are exempt which can not be taken from the debtor by any creditor. Exemptions are governed by state not Federal law therefore each state has its own exemption schedules.
Illinois State Law for example allows you to have a $15,000.00 homestead exemption for your home, a $2,400.00 exemption for a car and a $4,000.00 exemption on any personal property. In a bankruptcy you have to tell the creditors what exemptions you want to use and in most case you can keep the personal property in your possession. The exemptions also allow you to keep your pension plans; workman's comp. settlements and other assets you may have or secure.
You will need to have an experienced bankruptcy attorney to help you manage the use of these exemptions to keep what is rightfully yours from creditors. It should also be noted that the exemptions can also be used in state court lawsuits and can help you keep assets even if there is a judgment against you in state court.
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Contact bankruptcy attorney C. David Ward or Joseph D. Lovelace for a consultation today.
Illini Legal Services is engaged in the private practice of law and is not a public legal aid agency. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
