What property can I keep if I file for bankruptcy?

Chapter 7

Yes, you can file a Chapter 7 bankruptcy and keep property.  How much property you can keep depends on how much the property is worth, and the strategic application of “Exemptions” which are provided by law.

Exemptions are like umbrellas – they allow you to cover or protect your assets.  However, you are given limited exemptions/protections.  The vast majority of cases filed in Illinois would use Illinois Exemption Laws to determine what you can protect and how much you can protect.   However, there can be some exceptions for recent residents to our state.  We will use the exemptions to protect your property/assets.
 
During your free consultation, you will discuss with our attorneys (a) the status of your property/assets, (b) the value of your property/assets (not what you paid for the assets – but its current market value, trade-in value, etc.), (c) which exemption laws apply to you and (d) how to best apply the exemptions to your property.  You will then be informed of what you are able to keep/protect if you file for Chapter 7.

Chapter 13

Unlike a Chapter 7, if the repayment plan is constructed properly, a Debtor will be able to KEEP ALL his/her property!

A Chapter 13 is essentially a Court approved and monitored debt reorganization plan.   There are several requirements that must be met in order for the Judge to approve of the Debtor’s Chapter 13 plan.  One of these requirements relates to the value of the Debtor’s property.  In the event that the Debtor owns property which is not protected by the appropriate exemption law, the Debtor’s unsecured creditors must receive an amount equal to the unexempt property value during the life to the plan.  All of this will be reviewed with you during your free, confidential consultation with one of our experienced bankruptcy attorneys.