What money in my bank account is protected from creditors in Illinois?

1. Federal Floor. Social Security, SSI, SSDI, VA, federal pensions, and OPM annuities are protected under 42 U.S.C. § 407 and 38 U.S.C. § 5301. The federal "two-month rule" in 31 C.F.R. Part 212 automatically protects two months of direct-deposited federal benefits.

2. State Wild-Card / Cash Exemption. 735 ILCS 5/12-1001(b) gives every debtor a $4,000 personal-property wild card usable for any property including cash in a bank account — one of the more generous wild cards. Section 12-1001(g) adds tort-claim and personal-injury proceeds.

3. Other Source-Specific Exemptions. Public assistance (305 ILCS 5/11-3), unemployment (820 ILCS 405/1300), workers' comp (820 ILCS 305/21), child support, disability income, life insurance proceeds (215 ILCS 5/238), and 85% of net earnings (735 ILCS 5/12-803) are exempt.

4. Retirement Accounts. 735 ILCS 5/12-1006 provides broad exemption for IRAs, 401(k)s, 403(b)s, Roth IRAs, ERISA plans, public-employee pensions — generally no dollar cap for traceable retirement funds.

5. Joint Accounts. Illinois does not recognize tenancy by the entireties in personalty (only real estate); joint bank accounts presumed joint tenancy with creditor reaching debtor's share.

6. Claim of Exemption Process. 735 ILCS 5/12-1402: creditor's third-party citation served on bank; debtor served with notice of citation rights and exemption form; debtor files claim within 14 days of receipt or at citation court date.

7. Burden of Proof. Debtor must trace exempt source if not invoking wild card.

8. Penalty for Wrongful Garnishment. Court may award costs and attorney fees; willful violation can yield sanctions.

9. Bankruptcy Interplay. Illinois opted out of federal bankruptcy exemptions; Chapter 7 trustee reaches non-exempt cash; Chapter 13 lets debtor retain.

This is legal information, not legal advice.