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What About My Assets? (Cary)

What About My Assets?

In a Chapter 7 bankruptcy, the bankruptcy law gives the debtor the right to "exempt" certain assets from liquidation.  A common misconception about bankruptcy is that the debtor automatically loses all assets.  In most Chapter 7 cases, the debtor is permitted to keep their assets.

How to Protect Assets from Liquidation

When a Chapter 7 bankruptcy case is filed, the debtor files with the court a list of all assets.  The debtor also files a form called, "Schedule C," which designates certain assets as "exempt" from liquidation. 

In Illinois, the Illinois exemption statute usually determines which assets can be exempted.  The debtor can, for example, usually exempt up to $15,000 of equity in their primary residence, so long as the debtor actually lives at the residence.  In some cases, the statute allows a married person filing individually to exempt all of the equity in the home if certain requirements are satisfied.

There are different types of exemptions for different types of assets, such as a car, household furnishings, or bank account funds. 

If you would like to know whether your assets would be protected in a Chapter 7 bankruptcy case, contact us online or call us at 815-788-9511 for a free case evaluation.

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Law Office of Timothy Brown is committed assisting individuals in need of Debt Relief, Bankruptcy Litigation, Chapter 7, Chapter 13, Creditor Harassment Defense, Debt Collection Defense, and Foreclosure law issues in Illinois.

We will discuss your case with you at your convenience. Contact us today to schedule an appointment.