The Homestead Exemption In Bankruptcy

In an Illinois personal bankruptcy, the homestead exemption can protect part of the equity in your home. Under the Illinois bankruptcy exemption system, homeowners may exempt up to $15,000 of their home equity or other property covered by the homestead exemption. The Illinois homestead exemption requires you to be the property’s legal owner to claim the exemption, meaning that your name must be on the deed to the property. Married couples filing a joint bankruptcy can double their homestead exemption amount and protect up to $30,000 of their home equity. Before you take any legal action regarding bankruptcy, you should discuss your circumstances first with an experienced Chicago bankruptcy lawyer.

Bankruptcy isn’t the right answer for everybody who faces a mountain of debts. If it’s not the best option for you in your particular circumstances, your bankruptcy lawyer can suggest a practical, appropriate alternative. If you pursue bankruptcy in Illinois, your homestead exemption applies to real and personal property including your home, condo, or mobile home. The exemption also applies to proceeds from the sale of any real or personal property for up to a year after the date of that sale. The homestead exemption is automatic in Illinois. In other words, those filing for bankruptcy are not required to file a homestead declaration to claim their homestead exemption.

After examining your income, property, and liabilities, a good bankruptcy lawyer can recommend the action that’s in your best interests and make certain that you qualify for a Chapter 7 or a Chapter 13 bankruptcy. For scores of families and individuals in Illinois, bankruptcy has been the legal, responsible way to gain a new financial start. In the greater Chicago area, if you are piling up debts that you simply will not be able to pay, don’t wait. Nothing is more important than your future. Arrange at once to speak with an experienced Chicago bankruptcy lawyer.