Homeowners considering bankruptcy often want to know how much of their home equity can be protected. In Illinois, that protection is based on the homestead exemption, which changed on January 1st, 2026. The amounts before and after that date are explained below.
Frequently Asked Questions
How much home equity can I protect if I file bankruptcy in Illinois in 2026?
How much of your home equity you can protect when you file bankruptcy in the state of Illinois is based on the homestead exemption. Prior to January 1st, 2026, the homestead exemption was $15,000. As of January 1st, 2026, that homestead exemption increased from $15,000 to $50,000.
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