Bankruptcy exemptions can come from federal law or from state law. Illinois has opted out of the federal exemptions, so Illinois exemptions are the ones that apply, as long as a person has lived in the state for a designated period of time. A recent move to Illinois can change which state’s exemptions are used.
Frequently Asked Questions
Does Illinois let me use federal bankruptcy exemptions, or only state ones?
The exemptions in bankruptcy, there are federal exemptions and state exemptions. The state of Illinois has opted out of the use of the federal exemptions. So, in the state of Illinois, you would be using the Illinois exemptions.
This assumes that you have been in the state of Illinois for a designated period of time. If you’ve recently moved to the state of Illinois, then the exemptions that you’re going to use may be dependent on the state that you previously lived in.
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