102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2771

 

Introduced 2/19/2021, by Rep. Kelly M. Cassidy

 

SYNOPSIS AS INTRODUCED:
 
735 ILCS 5/12-1001  from Ch. 110, par. 12-1001

    Amends the Code of Civil Procedure. Provides that the debtor's interest, not to exceed $10,000 (instead of $2,400) in value, in any one motor vehicle is exempt from judgment, attachment, or distress for rent. Provides that the debtor's equity interest, not to exceed $7,500 (instead of $1,500) in value, in any implements, professional books, or tools of the trade of the debtor is exempt from judgment, attachment, or distress for rent. Provides that the debtor's equity interest, not to exceed $50,000 (instead of $4,000) in value, in any other property is exempt from judgment, attachment, or distress for rent. Provides that in each checking or savings account held by the debtor, an amount not to exceed $4,000 is exempt from judgment, attachment, or distress for rent until: (1) a hearing has been held; and (2) the debtor has been given a reasonable opportunity to indicate to which personal property he or she seeks to apply the exemption for other property, at which time the debtor may protect up to $4,000 of equity in any personal property, and the funds in the checking or savings account will either remain protected or be subject to garnishment. Provides that, upon receiving a citation to discover assets, a financial institution shall not freeze the debtor's access or turn over to the judgment creditor the amount in the debtor's account that is $4,000 or less, but shall inform the court and the judgment creditor of the exempt amount. Effective immediately.


LRB102 15991 LNS 21361 b

 

 

A BILL FOR

 

HB2771LRB102 15991 LNS 21361 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by
5changing Section 12-1001 as follows:
 
6    (735 ILCS 5/12-1001)   (from Ch. 110, par. 12-1001)
7    Sec. 12-1001. Personal property exempt. The following
8personal property, owned by the debtor, is exempt from
9judgment, attachment, or distress for rent:
10        (a) The necessary wearing apparel, bible, school
11    books, and family pictures of the debtor and the debtor's
12    dependents;
13        (b) The debtor's equity interest, not to exceed
14    $50,000 $4,000 in value, in any other property;
15        (c) The debtor's interest, not to exceed $10,000
16    $2,400 in value, in any one motor vehicle;
17        (d) The debtor's equity interest, not to exceed $7,500
18    $1,500 in value, in any implements, professional books, or
19    tools of the trade of the debtor;
20        (e) Professionally prescribed health aids for the
21    debtor or a dependent of the debtor;
22        (f) All proceeds payable because of the death of the
23    insured and the aggregate net cash value of any or all life

 

 

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1    insurance and endowment policies and annuity contracts
2    payable to a wife or husband of the insured, or to a child,
3    parent, or other person dependent upon the insured, or to
4    a revocable or irrevocable trust which names the wife or
5    husband of the insured or which names a child, parent, or
6    other person dependent upon the insured as the primary
7    beneficiary of the trust, whether the power to change the
8    beneficiary is reserved to the insured or not and whether
9    the insured or the insured's estate is a contingent
10    beneficiary or not;
11        (g) The debtor's right to receive:
12            (1) a social security benefit, unemployment
13        compensation, or public assistance benefit;
14            (2) a veteran's benefit;
15            (3) a disability, illness, or unemployment
16        benefit; and
17            (4) alimony, support, or separate maintenance, to
18        the extent reasonably necessary for the support of the
19        debtor and any dependent of the debtor.
20        (h) The debtor's right to receive, or property that is
21    traceable to:
22            (1) an award under a crime victim's reparation
23        law;
24            (2) a payment on account of the wrongful death of
25        an individual of whom the debtor was a dependent, to
26        the extent reasonably necessary for the support of the

 

 

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1        debtor;
2            (3) a payment under a life insurance contract that
3        insured the life of an individual of whom the debtor
4        was a dependent, to the extent reasonably necessary
5        for the support of the debtor or a dependent of the
6        debtor;
7            (4) a payment, not to exceed $15,000 in value, on
8        account of personal bodily injury of the debtor or an
9        individual of whom the debtor was a dependent; and
10            (5) any restitution payments made to persons
11        pursuant to the federal Civil Liberties Act of 1988
12        and the Aleutian and Pribilof Island Restitution Act,
13        P.L. 100-383.
14        For purposes of this subsection (h), a debtor's right
15    to receive an award or payment shall be exempt for a
16    maximum of 2 years after the debtor's right to receive the
17    award or payment accrues; property traceable to an award
18    or payment shall be exempt for a maximum of 5 years after
19    the award or payment accrues; and an award or payment and
20    property traceable to an award or payment shall be exempt
21    only to the extent of the amount of the award or payment,
22    without interest or appreciation from the date of the
23    award or payment.
24        (i) The debtor's right to receive an award under Part
25    20 of Article II of this Code relating to crime victims'
26    awards.

 

 

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1        (j) Moneys held in an account invested in the Illinois
2    College Savings Pool of which the debtor is a participant
3    or donor and funds invested in an ABLE Account as defined
4    by Section 529 of the Internal Revenue Code, except the
5    following non-exempt contributions:
6            (1) any contribution to such account by the debtor
7        as participant or donor that is made with the actual
8        intent to hinder, delay, or defraud any creditor of
9        the debtor;
10            (2) any contributions to such account by the
11        debtor as participant during the 365 day period prior
12        to the date of filing of the debtor's petition for
13        bankruptcy that, in the aggregate during such period,
14        exceed the amount of the annual gift tax exclusion
15        under Section 2503(b) of the Internal Revenue Code of
16        1986, as amended, in effect at the time of
17        contribution; or
18            (3) any contributions to such account by the
19        debtor as participant during the period commencing 730
20        days prior to and ending 366 days prior to the date of
21        filing of the debtor's petition for bankruptcy that,
22        in the aggregate during such period, exceed the amount
23        of the annual gift tax exclusion under Section 2503(b)
24        of the Internal Revenue Code of 1986, as amended, in
25        effect at the time of contribution.
26        For purposes of this subsection (j), "account"

 

 

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1    includes all accounts for a particular designated
2    beneficiary, of which the debtor is a participant or
3    donor.
4        (k) In each checking or savings account held by the
5    debtor, an amount not to exceed $4,000, until:
6            (1) a hearing has been held; and
7            (2) the debtor has been given a reasonable
8        opportunity to indicate to which personal property he
9        or she seeks to apply the exemption in subsection (b),
10        at which time the debtor may protect up to $4,000 of
11        equity in any personal property, and the funds in a
12        checking or savings account will either remain
13        protected or be subject to garnishment.
14        Upon receiving a citation to discover assets, a
15    financial institution shall not freeze the debtor's access
16    or turn over to the judgment creditor the amount in the
17    debtor's account that is $4,000 or less, but shall inform
18    the court and the judgment creditor of the exempt amount.
19    Money due the debtor from the sale of any personal
20property that was exempt from judgment, attachment, or
21distress for rent at the time of the sale is exempt from
22attachment and garnishment to the same extent that the
23property would be exempt had the same not been sold by the
24debtor.
25    If a debtor owns property exempt under this Section and he
26or she purchased that property with the intent of converting

 

 

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1nonexempt property into exempt property or in fraud of his or
2her creditors, that property shall not be exempt from
3judgment, attachment, or distress for rent. Property acquired
4within 6 months of the filing of the petition for bankruptcy
5shall be presumed to have been acquired in contemplation of
6bankruptcy.
7    The personal property exemptions set forth in this Section
8shall apply only to individuals and only to personal property
9that is used for personal rather than business purposes. The
10personal property exemptions set forth in this Section shall
11not apply to or be allowed against any money, salary, or wages
12due or to become due to the debtor that are required to be
13withheld in a wage deduction proceeding under Part 8 of this
14Article XII.
15(Source: P.A. 100-922, eff. 1-1-19.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.