Illinois Bankruptcy Exemptions
Reform and alterations to the Illinois bankruptcy exemption provisions
The original source for Illinois bankruptcy exemptions was the state legislature. Over time, individual laws were compiled regarding a list of property necessary for continued existence - food, shelter, and clothes. Additionally, the legislature also believed that lives should not be needlessly destroyed by allowing creditors to run roughshod over defaulting debtors. The practice of punishing debtors was once common, and new laws were intended to permit debtors to survive the collection process, retain jobs, and continue as taxpaying employees who may thrive again.
Recent alterations in substantive Illinois law
The permissible amount of exempt homesteads and property remains a volatile political issue. In recent years, US legislators have increasingly adopted a nonchalant attitude toward consumer protection, and focused primarily on placating demands of the wealthiest segment within the political process. As a result, a new federal law now sets maximum limits on the homestead exemption nationwide, prevents citizens from filing for liquidation in most situations, and extends repayment plans in more than half of all cases filed - to pad record profits already enjoyed by national lenders.