Illinois Bankruptcy Laws - Personal Injury Awards, Crime Victims Compensation

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: . . . (h) The debtor's right to receive, or property that is traceable to: (1) an award under a crime victim's reparation law; (2) a payment on account of the wrongful death of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor; (3) a payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor or a dependent of the debtor; (4) a payment, not to exceed $7,500 in value, on account of personal bodily injury of the debtor or an individual of whom the debtor was a dependent; and (5) any restitution payments made to persons pursuant to the federal Civil Liberties Act . . . "

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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