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Chicago Bankruptcy Lawyer > Blog > Bankruptcy > Bankruptcy And The Wildcard Exemption

Bankruptcy And The Wildcard Exemption

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If you’re in the Chicago area and you’re struggling with mounting debts, you are not alone. Thousands file for personal bankruptcy every year, and if you choose bankruptcy in Illinois, you will not lose everything you own. Before you make any decisions or take any legal action, speak first with an experienced Chicago bankruptcy lawyer. Bankruptcy is an extreme measure; it’s not for everyone, and after assessing your circumstances, a good bankruptcy lawyer may suggest another option.

However, if you file for Chapter 7 bankruptcy in Illinois, you are allowed a $4,000 “wildcard” exemption that you may apply to any personal property other than your wages. The Illinois wildcard exemption, which is quite generous compared to several other states, allows you to keep property that isn’t covered by other Illinois bankruptcy exemptions. You may also add it to another Illinois personal property exemption – such as your automobile – to increase your exemption amount for that item.

When you file for Chapter 7 bankruptcy you get to wipe out “dischargeable” debts, but not student loans, tax debts, child support, or fines or fees owed to civil or criminal courts. In exchange, you must turn over the remainder of your property and assets – after applying your exemptions – to a bankruptcy trustee (the person named to manage your bankruptcy) who will liquidate your property and distribute the proceeds to your creditors.

Illinois has several bankruptcy exemptions that protect you. You may keep up to $2,400 in motor vehicle equity, up to $15,000 of personal injury recoveries, healthcare aids and devices, a Bible, your clothing, and several other exemptions. You can use the wildcard exemption to protect $4,000 worth of anything you own except your wages. If you can’t pay your debts, don’t just ignore them – that makes things worse. Instead, discuss your legal rights and options as quickly as possible with an experienced Chicago bankruptcy lawyer.

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