96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5479

 

Introduced 2/5/2010, by Rep. Michael P. McAuliffe

 

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

    Amends the Code of Civil Procedure. Provides that any federal disability benefit awarded to a veteran for a service-connected disability pursuant to 38 U.S.C 11 is exempt from claims of creditors and from judgment, attachment, levy, seizure by or under any legal or equitable process, or distress for rent. Effective immediately.


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A BILL FOR

 

HB5479 LRB096 19598 AJO 34990 b

1     AN ACT concerning civil law.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Code of Civil Procedure is amended by
5 changing 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
8 personal property, owned by the debtor, is exempt from
9 judgment, 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 $4,000
14     in value, in any other property;
15         (c) The debtor's interest, not to exceed $2,400 in
16     value, in any one motor vehicle;
17         (d) The debtor's equity interest, not to exceed $1,500
18     in value, in any implements, professional books, or tools
19     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, whether
4     the power to change the beneficiary is reserved to the
5     insured or not and whether the insured or the insured's
6     estate is a contingent beneficiary or not;
7         (g) The debtor's right to receive:
8             (1) a social security benefit, unemployment
9         compensation, or public assistance benefit;
10             (2) a veteran's benefit;
11             (3) a disability, illness, or unemployment
12         benefit; and
13             (4) alimony, support, or separate maintenance, to
14         the extent reasonably necessary for the support of the
15         debtor and any dependent of the debtor.
16         (h) The debtor's right to receive, or property that is
17     traceable to:
18             (1) an award under a crime victim's reparation law;
19             (2) a payment on account of the wrongful death of
20         an individual of whom the debtor was a dependent, to
21         the extent reasonably necessary for the support of the
22         debtor;
23             (3) a payment under a life insurance contract that
24         insured the life of an individual of whom the debtor
25         was a dependent, to the extent reasonably necessary for
26         the support of the debtor or a dependent of the debtor;

 

 

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1             (4) a payment, not to exceed $15,000 in value, on
2         account of personal bodily injury of the debtor or an
3         individual of whom the debtor was a dependent; and
4             (5) any restitution payments made to persons
5         pursuant to the federal Civil Liberties Act of 1988 and
6         the Aleutian and Pribilof Island Restitution Act, P.L.
7         100-383.
8         For purposes of this subsection (h), a debtor's right
9     to receive an award or payment shall be exempt for a
10     maximum of 2 years after the debtor's right to receive the
11     award or payment accrues; property traceable to an award or
12     payment shall be exempt for a maximum of 5 years after the
13     award or payment accrues; and an award or payment and
14     property traceable to an award or payment shall be exempt
15     only to the extent of the amount of the award or payment,
16     without interest or appreciation from the date of the award
17     or payment.
18         (i) The debtor's right to receive an award under Part
19     20 of Article II of this Code relating to crime victims'
20     awards.
21         (j) Moneys held in an account invested in the Illinois
22     College Savings Pool of which the debtor is a participant
23     or donor, except the following non-exempt contributions:
24             (1) any contribution to such account by the debtor
25         as participant or donor that is made with the actual
26         intent to hinder, delay, or defraud any creditor of the

 

 

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1         debtor;
2             (2) any contributions to such account by the debtor
3         as participant during the 365 day period prior to the
4         date of filing of the debtor's petition for bankruptcy
5         that, in the aggregate during such period, exceed the
6         amount of the annual gift tax exclusion under Section
7         2503(b) of the Internal Revenue Code of 1986, as
8         amended, in effect at the time of contribution; or
9             (3) any contributions to such account by the debtor
10         as participant during the period commencing 730 days
11         prior to and ending 366 days prior to the date of
12         filing of the debtor's petition for bankruptcy that, in
13         the aggregate during such period, exceed the amount of
14         the annual gift tax exclusion under Section 2503(b) of
15         the Internal Revenue Code of 1986, as amended, in
16         effect at the time of contribution.
17         For purposes of this subsection (j), "account"
18     includes all accounts for a particular designated
19     beneficiary, of which the debtor is a participant or donor.
20     Money due the debtor from the sale of any personal property
21 that was exempt from judgment, attachment, or distress for rent
22 at the time of the sale is exempt from attachment and
23 garnishment to the same extent that the property would be
24 exempt had the same not been sold by the debtor.
25     Any federal disability benefit awarded to a veteran for a
26 service-connected disability pursuant to 38 U.S.C 11 is exempt

 

 

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1 from claims of creditors and from judgment, attachment, levy,
2 seizure by or under any legal or equitable process, or distress
3 for rent.
4     If a debtor owns property exempt under this Section and he
5 or she purchased that property with the intent of converting
6 nonexempt property into exempt property or in fraud of his or
7 her creditors, that property shall not be exempt from judgment,
8 attachment, or distress for rent. Property acquired within 6
9 months of the filing of the petition for bankruptcy shall be
10 presumed to have been acquired in contemplation of bankruptcy.
11     The personal property exemptions set forth in this Section
12 shall apply only to individuals and only to personal property
13 that is used for personal rather than business purposes. The
14 personal property exemptions set forth in this Section shall
15 not apply to or be allowed against any money, salary, or wages
16 due or to become due to the debtor that are required to be
17 withheld in a wage deduction proceeding under Part 8 of this
18 Article XII.
19 (Source: P.A. 94-293, eff. 1-1-06; 95-306, eff. 1-1-08.)
 
20     Section 99. Effective date. This Act takes effect upon
21 becoming law.