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What are bankruptcy exemptions in Illinois?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

Illinois has modest exemptions by national comparison, with no federal bankruptcy exemption alternative.

1. Opt-Out State

Illinois opted out under 735 ILCS 5/12-1201. Debtors must use Illinois exemptions.

2. Homestead — 735 ILCS 5/12-901

  • $15,000 for individuals.
  • $30,000 for joint filers/spouses.

    • Among the lower homestead exemptions in the country. Reduced from federal levels because of opt-out.

    3. Personal Property Exemptions — 735 ILCS 5/12-1001

  • Wildcard — § 12-1001(b): $4,000 in any personal property of debtor's choice (including cash). Often used for additional vehicle equity, jewelry, or bank accounts.
  • Necessary clothing, family pictures, schoolbooks — § 12-1001(a): unlimited.
  • Bible, prayer books: unlimited.
  • Motor vehicle — § 12-1001(c): $2,400.
  • Tools of trade — § 12-1001(d): $1,500.
  • Health aids — § 12-1001(e): unlimited.
  • Crops — § 12-1001(g): full crops debtor's interest in to extent of $7,500.
  • Personal injury proceeds — § 12-1001(h): $15,000.
  • Wrongful death proceeds — § 12-1001(h): full amount.

    • 4. Wages — 735 ILCS 5/12-803

    85% of gross weekly wages OR 45 times federal minimum wage (whichever greater) protected from garnishment.

    5. Retirement Accounts — 735 ILCS 5/12-1006

  • Public employee pensions: fully exempt.
  • ERISA-qualified plans: fully exempt.
  • IRAs: limited to amount "reasonably necessary for support" of debtor and dependents (stricter than many states).

    • 6. Insurance — 735 ILCS 5/12-1001(f)

    Life insurance proceeds and disability benefits — exempt to extent reasonably necessary for support.

    7. Public Benefits — 735 ILCS 5/12-1001(g)(1)

    Social Security, unemployment, workers' comp, veterans' benefits — fully exempt.

    8. Spousal Maintenance/Child Support — 735 ILCS 5/12-1001(g)(4)

    Exempt to extent reasonably necessary for support.

    9. College Savings Plans — 735 ILCS 5/12-1001(j)

    Bright Start and similar plans — exempt for contributions made more than 1 year before filing.

    10. Tenancy by the Entirety

    Illinois recognizes tenancy by the entirety only for homestead property — limited asset protection compared to Florida.

    11. Domicile Requirement

    730-day rule under 11 U.S.C. § 522(b)(3) applies.

    12. No Inflation Adjustment

    Illinois exemptions are NOT routinely adjusted for inflation — amounts have remained largely stagnant for years.

    This is legal information, not legal advice.

    When to Talk to a Lawyer
    • Your home equity exceeds $15,000 (single) or $30,000 (joint) — much may be non-exempt
    • You have an IRA and need to argue 'reasonably necessary for support'
    • You're considering tenancy by the entirety for additional protection
    Related Statutes & Laws
    • 735 ILCS 5/12-901
    • 735 ILCS 5/12-1001
    • 735 ILCS 5/12-1006
    • 735 ILCS 5/12-1201

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.