Illinois law allows an individual to exempt up to $15,000.00 of equity in his or her home from claims brought by a creditor. For a married couple owning the home jointly the exemption would go up to $30,000.00. In many cases this provision will allows people who file a Chapter 7 Bankruptcy to keep their home.
One does not necessarily have to own a house or a condo though to take advantage of the homestead exemption. The Illinois Statute provides that the homestead exemption will also apply to personal property provided it is used as one’s principal residence. Thus a couple, who live in mobile home, can protect up to $30,000.00 of the value of the home from creditors provided they own it jointly. The exemption would also apply to a boat, if the owner uses the boat as his or her principal residence.
The wording of the statute in fact covers all personal property, so it could even apply to a car, or a tent, or an airplane. The tricky part once you get beyond mobile homes and boats though, might be to convince a court that you are really using the item of personal property as your primary home.
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