Bankruptcy Exemptions in Illinois- Which Law Applies?
Under the U.S Bankruptcy Code, an individual filing for Chapter 7 is allowed to keep their property, so long as the property does not exceed a certain dollar amount. The particular dollar amounts are governed by the applicable "exemptions." The U.S. Bankruptcy Code states that federal law will be used to determine a debtor's property exemptions, unless the individual state has "opted-out" of this federal exemption plan. If a state opts-out of the federal plan, the state may apply its own exemption law. In Illinois, the state has opted-out of the federal plan. As such, the state's exemption law determines the extent to which a debtor's property is protected in a Chapter 7 Bankruptcy case.Posted By The Law Office of Timothy Brown Categories: