100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5480

 

Introduced , by Rep. Will Guzzardi

 

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, 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 a 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.


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A BILL FOR

 

HB5480LRB100 20526 HEP 35911 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 $50,000
14    $4,000 in value, in any other property;
15        (c) The debtor's interest, not to exceed $10,000 $2,400
16    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 a
4    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 law;
23            (2) a payment on account of the wrongful death of
24        an individual of whom the debtor was a dependent, to
25        the extent reasonably necessary for the support of the
26        debtor;

 

 

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

 

 

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1    or donor, except the following non-exempt contributions:
2            (1) any contribution to such account by the debtor
3        as participant or donor that is made with the actual
4        intent to hinder, delay, or defraud any creditor of the
5        debtor;
6            (2) any contributions to such account by the debtor
7        as participant during the 365 day period prior to the
8        date of filing of the debtor's petition for bankruptcy
9        that, in the aggregate during such period, exceed the
10        amount of the annual gift tax exclusion under Section
11        2503(b) of the Internal Revenue Code of 1986, as
12        amended, in effect at the time of contribution; or
13            (3) any contributions to such account by the debtor
14        as participant during the period commencing 730 days
15        prior to and ending 366 days prior to the date of
16        filing of the debtor's petition for bankruptcy that, in
17        the aggregate during such period, exceed the amount of
18        the annual gift tax exclusion under Section 2503(b) of
19        the Internal Revenue Code of 1986, as amended, in
20        effect at the time of contribution.
21        For purposes of this subsection (j), "account"
22    includes all accounts for a particular designated
23    beneficiary, of which the debtor is a participant or donor.
24        (k) In each checking or savings account held by the
25    debtor, an amount not to exceed $4,000, until:
26            (1) a hearing has been held; and

 

 

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1            (2) the debtor has been given a reasonable
2        opportunity to indicate to which personal property he
3        or she seeks to apply the exemption in subsection (b),
4        at which time the debtor may protect up to $4,000 of
5        equity in any personal property, and the funds in a
6        checking or savings account will either remain
7        protected or be subject to garnishment.
8        Upon receiving a citation to discover assets, a
9    financial institution shall not freeze the debtor's access
10    or turn over to the judgment creditor the amount in the
11    debtor's account that is $4,000 or less, but shall inform
12    the court and the judgment creditor of the exempt amount.
13    Money due the debtor from the sale of any personal property
14that was exempt from judgment, attachment, or distress for rent
15at the time of the sale is exempt from attachment and
16garnishment to the same extent that the property would be
17exempt had the same not been sold by the debtor.
18    If a debtor owns property exempt under this Section and he
19or she purchased that property with the intent of converting
20nonexempt property into exempt property or in fraud of his or
21her creditors, that property shall not be exempt from judgment,
22attachment, or distress for rent. Property acquired within 6
23months of the filing of the petition for bankruptcy shall be
24presumed to have been acquired in contemplation of bankruptcy.
25    The personal property exemptions set forth in this Section
26shall apply only to individuals and only to personal property

 

 

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1that is used for personal rather than business purposes. The
2personal property exemptions set forth in this Section shall
3not apply to or be allowed against any money, salary, or wages
4due or to become due to the debtor that are required to be
5withheld in a wage deduction proceeding under Part 8 of this
6Article XII.
7(Source: P.A. 97-1030, eff. 8-17-12.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.