When filing for bankruptcy in Illinois there are a number of bankruptcy exemptions available, including the homestead exemption, which is a particular interest to home owners hoping to retain their domicile.
Illinois Bankruptcy Homestead Exemption
Under the Homestead Exemption, a homeowner is able to exempt up to $15,000 of equity on their home or other property used as a residence. That amount doubles to $30,000 for couples filing jointly. The Illinois statute has a special provision for surviving spouses and children under the Homestead Exemption allowing a surviving spouse to protect equity in the home if the owner dies and also children under the age of 18.
Tenancy in the Entirety
Property owned jointly by a married couple is held as tenancy in the entirety, which offers what some refer to as a super exemption because debtors may be able to file and protect more of their property when it is owned jointly in marriage. A house that is owned by a single marital entity – not an individual – can prevent creditors from taking away the home to pay off debts of one owner. However, tenancy in the entirety does not guarantee complete protection from losing a home; limits may be imposed on owners with tax debt or a couple who has unsecured debt such as credit cards. It is best to discuss your options with an experienced bankruptcy attorney.
Contact Our Bankruptcy Team Today
Many who are considering bankruptcy are understandably concerned about protecting their home, especially when children are still living at home. It is important to explore all of the strategies that may be available to you under bankruptcy protection. If you would like more information regarding the Illinois bankruptcy Homestead Exemption and Tenancy in the Entirety, or have other questions regarding chapter 7 or 13 personal bankruptcy contact Charles E. Covey for help today at 309-674-8125.
