"Illinois Property Exemptions"

Certain property is exempt from forfeiture and liquidation for payment of unsecured debts. Debtors in Illinois bankruptcy cases may elect the specific property listed by state statute which include allowances for personal property, insurance, pensions, tools of trade and many other items. The characterization of property to conform to allowed statutory definitions of exempt property is often subject to dispute. 16 state jurisdictions allow debtors to alternatively select the federal exemptions specified by the Code.

New privacy rules went into effect December 1, 2003 for all Illinois bankruptcy courts. Previously, the social security number for each debtor was made publicly available through the clerk's office in all cases. The new rule now requires only the last four digits to be made publicly available because of the rise in identity theft. Concerns regarding inclusion of the names and ages of minor children within schedules remain hotly debated. The Illinois Bankruptcy Court for the Northern District issued a standing order on February 17, 2004 because of the dischargeability of attorney fees. In a case under Chapter 7 of the Code, where the debtor's attorney agreed to represent the debtor upon the condition of a later written agreement to pay attorney fees after filing, the Court will now allow an attorney to withdraw if the debtor refuses to sign the agreement.

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