Bankruptcy exemptions in Illinois: what you can keep

Every Illinois exemption with its amount and law, plus the federal rules that limit them.

Checked against official sources: October 25, 2026.

Short answer

In Illinois you use state exemptions only (exemptions are the property the law lets you keep). Your home (homestead): $50,000 per person in a home you own or lease and live in (house and land, condominium, mobile home or co-op).

Exemption system: State exemptions only
Car or other vehicle: $3,600 of your equity in one motor vehicle (per person)
Wildcard (any property): $4,000 of your equity in any other property (per person). Outside bankruptcy, $1,000 of this is an automatic exemption for bank accounts.
Amounts: January 1, 2026. Amounts are set by statute and are not indexed.

Exemptions in Illinois, item by item

Exemptions are the property the law lets you keep. You use the Illinois list. The federal list is not available in Illinois.

Law: 735 ILCS 5/12-1201

What	Illinois exemption
Home (homestead)	$50,000 per person in a home you own or lease and live in (house and land, condominium, mobile home or co-op). If 2 or more people own the home, each person's exemption is their ownership share of $100,000. Each individual gets their own exemption, so two co-owners who both live there can protect up to $100,000 together. Amounts raised from $15,000 (and $30,000 for co-owners) on January 1, 2026. No filing or declaration is required by the statute. Law: 735 ILCS 5/12-901
Car or other vehicle	$3,600 of your equity in one motor vehicle (per person) Law: 735 ILCS 5/12-1001(c)
Household goods and clothing	All household goods and personal possessions (furniture, appliances, clothing, computers, phones, pets, health aids and more), but a creditor can ask the court to take any single item with a resale value over $5,000. One piece of jewelry up to $5,000. Law: 735 ILCS 5/12-1001(a)
Wildcard (any property)	$4,000 of your equity in any other property (per person). Outside bankruptcy, $1,000 of this is an automatic exemption for bank accounts. Law: 735 ILCS 5/12-1001(b); 735 ILCS 5/12-1001.1
Tools of your trade	$2,250 of your equity in tools, implements and professional books of your trade Law: 735 ILCS 5/12-1001(d)
Wages	A creditor can take no more than the lesser of 15% of your gross weekly pay or the amount your weekly take-home pay is above 45 times the federal or Illinois minimum hourly wage (whichever is higher). The rest is protected. Law: 735 ILCS 5/12-803
Retirement accounts	Pensions, 401(k)s, IRAs, government and church plans and Illinois public pensions are exempt if the plan is meant in good faith to qualify under the tax code. Law: 735 ILCS 5/12-1006
Public benefits	Social Security, unemployment, public assistance, veterans' benefits, disability or illness benefits, and alimony or support you need for yourself and your dependents are exempt. Workers' compensation payments are also protected. Law: 735 ILCS 5/12-1001(g); 820 ILCS 305/21
Other exemptions	Life insurance proceeds and cash value payable to your spouse, child, parent or other dependent are exempt. Crime victim awards are exempt. Wrongful-death payments are exempt to the extent you need them for support, and up to $22,500 of a personal injury payment is exempt. These protections last for limited periods (2 years for the right to receive, 5 years for property traced to the payment). Illinois College Savings Pool (529) and ABLE accounts are exempt, except for large deposits made in the 2 years before filing. Law: 735 ILCS 5/12-1001(f); 735 ILCS 5/12-1001(h); 735 ILCS 5/12-1001(j)

Amounts: January 1, 2026. Amounts are set by statute and are not indexed.

The Illinois homestead exemption

$50,000 per person in a home you own or lease and live in (house and land, condominium, mobile home or co-op). If 2 or more people own the home, each person's exemption is their ownership share of $100,000.

Each individual gets their own exemption, so two co-owners who both live there can protect up to $100,000 together. Amounts raised from $15,000 (and $30,000 for co-owners) on January 1, 2026. No filing or declaration is required by the statute.

Law: 735 ILCS 5/12-901

What changed in 2024–2026 in Illinois

Public Act 104-0120, effective January 1, 2026: homestead $15,000 -> $50,000 per person ($30,000 -> $100,000 for 2+ owners); vehicle $2,400 -> $3,600; tools of trade $1,500 -> $2,250; personal injury $15,000 -> $22,500; household goods rewritten into a broad exemption with a $5,000 per-item resale cap and one piece of jewelry up to $5,000; $1,000 of the $4,000 wildcard made an automatic bank-account exemption in collection cases.

Law: SB 1738

Retirement money

Pensions, 401(k)s, IRAs, government and church plans and Illinois public pensions are exempt if the plan is meant in good faith to qualify under the tax code.

Law: 735 ILCS 5/12-1006

Retirement money in tax-exempt accounts is protected whichever set of exemptions you use (IRAs subject to the 522(n) cap).

Law: 11 U.S.C. 522(b)(3)(C), 522(d)(12), 522(n)

The 730-day rule

You use the exemption law of the state where you lived (your domicile) for the full 730 days (2 years) before you filed. If you moved between states during those 2 years, you use the law of the state where you lived for the 180 days before that 2-year period, or where you lived the longest part of those 180 days.

Law: 11 U.S.C. 522(b)(3)(A)

If this rule leaves you with no exemptions at all (for example, the state's exemptions apply only to its residents and you no longer live there), you can use the federal exemptions instead.

Law: 11 U.S.C. 522(b)(3), flush language

In nearby states

Indiana: State exemptions only. Home (homestead): $22,750 in the home (real estate or personal property such as a mobile home) that you or a dependent live in.
Missouri: State exemptions only. Home (homestead): $15,000 in your home and the land used with it.
Iowa: State exemptions only. Home (homestead): unlimited value — up to 1/2 acre inside a city plat, or up to 40 acres elsewhere.
Kentucky: State or federal, your choice. Home (homestead): $5,000 in real or personal property that you or a dependent use as a permanent home in Kentucky, or in a burial plot.

Your next steps in Illinois

List what you own
List each thing you own and what it is worth on Official Form 106A/B.
Check the exemption list
For each item, find the Illinois exemption that covers it and its limit.
Fill in Schedule C
Exemptions are claimed on Official Form 106C.
Ask for free help
Ask for free help: Chicago Bankruptcy Pro Se Help Desk (U.S. Bankruptcy Court, Chicago Bar Association and Legal Aid Chicago) and Legal Aid Chicago.

Where to get free help in Illinois

Questions about exemptions in Illinois

Does Illinois let me choose the federal exemptions?

No. Illinois requires you to use the state exemptions.

Can I keep my house in bankruptcy in Illinois?

Can I keep my car in Illinois?

$3,600 of your equity in one motor vehicle (per person)

Is there a wildcard in Illinois?

$4,000 of your equity in any other property (per person). Outside bankruptcy, $1,000 of this is an automatic exemption for bank accounts.

What household goods can I keep in Illinois?

All household goods and personal possessions (furniture, appliances, clothing, computers, phones, pets, health aids and more), but a creditor can ask the court to take any single item with a resale value over $5,000. One piece of jewelry up to $5,000.

What happens to retirement money in Illinois?

Pensions, 401(k)s, IRAs, government and church plans and Illinois public pensions are exempt if the plan is meant in good faith to qualify under the tax code.

What is the wage exemption in Illinois?

A creditor can take no more than the lesser of 15% of your gross weekly pay or the amount your weekly take-home pay is above 45 times the federal or Illinois minimum hourly wage (whichever is higher). The rest is protected.