Illinois Bankruptcy Laws - Insurance, Social Security, Alimony

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: . . . (f) All proceeds payable because of the death of the insured and the aggregate net cash value of any or all life insurance and endowment policies and annuity contracts payable to a wife or husband of the insured, or to a child, parent, or other person dependent upon the insured, whether the power to change the beneficiary is reserved to the insured or not and whether the insured or the insured's estate is a contingent beneficiary or not; (g) The debtor's right to receive: (1) a social security benefit, unemployment compensation, or public assistance benefit; (2) a veteran's benefit; (3) a disability, illness, or unemployment benefit; and (4) alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.

Operation of Illinois bankruptcy laws with the Code

According to 11 U.S.C. 522(l) "The debtor shall file a list of property that the debtor claims as exempt under subsection (b) of this section. If the debtor does not file such a list, a dependent of the debtor may file such a list, or may claim property as exempt from property of the estate on behalf of the debtor. Unless a party in interest objects, the property claimed as exempt on such list is exempt." The trustee, creditors, an interested party, or the Illinois bankruptcy court upon it's own motion, may file an objection to exemptions designated within a debtor's schedule. Denial requires notice to debtors and hearing.

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