Illinois Bankruptcy Laws - Household Goods, Vehicles, Tools of Trade

IL Code of Civ. Proc., Sec. 12‑1001 provides, in part, "Personal property exempt. The following personal property, owned by the debtor, is exempt from judgment, attachment, or distress for rent: (a) The necessary wearing apparel, bible, school books, and family pictures of the debtor and the debtor's dependents; (b) The debtor's equity interest, not to exceed $2,000 in value, in any other property; (c) The debtor's interest, not to exceed $1,200 in value, in any one motor vehicle; (d) The debtor's equity interest, not to exceed $750 in value, in any implements, professional books, or tools of the trade of the debtor; (e) Professionally prescribed health aids for the debtor or a dependent of the debtor."

Operation of Illinois bankruptcy laws with the Code

Money due the debtor from the sale of any personal property that was exempt from judgment, attachment, or distress for rent at the time of the sale is exempt from attachment and garnishment to the same extent that the property would be exempt had the same not been sold by the debtor. The same process applies in Illinois bankruptcy courts. If a debtor owns property exempt and he or she purchased that property with the intent of converting nonexempt property into exempt property or in fraud of his or her creditors, that property shall not be exempt from judgment, attachment, or distress for rent. Property acquired within 6 months of the filing of the petition for bankruptcy shall be presumed to have been acquired in contemplation of bankruptcy. The personal property exemptions shall apply only to individuals and only to personal property that is used for personal rather than business purposes. Personal property exemptions in Illinois bankruptcy courts shall not apply to or be allowed against any money, salary, or wages due or to become due to the debtor that are required to be withheld in a wage deduction proceeding.

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