What Is the $4,000 Illinois Wildcard Exemption in Chapter 7 Bankruptcy?
The Flexible Exemption That Helps Illinois Filers Keep What Matters Most Key Takeaways: The Illinois wildcard exemption, found at 735 ILCS 5/12-1001(b), protects up to $4,000 of a debtor’s equity in almost any personal property, making it one of the most flexible tools for Chapter 7 filers. It commonly applies to cash, bank balances, tax […]
What Is Chapter 13 Lien Stripping of a Second Mortgage in Illinois?
Removing an Underwater Second Mortgage Through an Illinois Repayment Plan Key Takeaways: Chapter 13 lien stripping may allow an Illinois homeowner to reclassify a wholly unsecured second mortgage as ordinary unsecured debt when the home’s value is fully consumed by the first mortgage. This remedy flows from case law interpreting the anti-modification rule in 11 […]
What Counts as Home Equity When Filing Chapter 7 in Illinois?
Protecting Your Home When You File for Bankruptcy Relief in Illinois Key Takeaways: In Illinois, home equity is calculated as your property’s fair market value minus your mortgage balance and any other liens, and this figure determines whether your residence is fully protected in a Chapter 7 case. The Illinois homestead exemption generally shields up […]
What Is a Motion to Incur Debt for a Chapter 13 Home Purchase in Illinois?
Understanding Court Permission to Buy a Home During a Repayment Plan Key Takeaways: A motion to incur debt is a formal request asking the bankruptcy court and trustee for permission to take on new financial obligations, such as a mortgage, while your Chapter 13 case remains active. In Illinois, this step is required because a […]
Illinois Caps Wage Garnishment at 15%: How Chapter 7 Stops It Fast
Understanding the Illinois 15% Garnishment Cap and Your Fastest Path Out Key Takeaways: Illinois law caps wage garnishment under 735 ILCS 5/12-803 at the lesser of 15% of gross weekly wages or the amount by which disposable earnings exceed 45 times the greater of federal or state minimum wage, with a hard floor protecting weekly […]