Full Text of HB2771 102nd General Assembly
HB2771 102ND GENERAL ASSEMBLY |
| | 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 |
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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.
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| | A BILL FOR |
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| 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 | 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 | 20 | | property that was
exempt from judgment, attachment, or | 21 | | distress for rent at the
time of the sale is exempt from | 22 | | attachment and garnishment to the same
extent that the | 23 | | property would be exempt had the same not been sold by
the | 24 | | debtor.
| 25 | | If a debtor owns property exempt under this Section and he | 26 | | or she purchased
that property with the intent of converting |
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| 1 | | nonexempt property into exempt
property or in fraud of his or | 2 | | her creditors, that property shall not be
exempt from | 3 | | judgment, attachment, or distress for rent. Property acquired
| 4 | | within 6 months of the filing of the petition for bankruptcy | 5 | | shall be presumed
to have been acquired in contemplation of | 6 | | bankruptcy.
| 7 | | The personal property exemptions set forth in this Section | 8 | | shall apply
only to individuals and only to personal property | 9 | | that is used for personal
rather than business purposes. The | 10 | | personal property exemptions set forth
in this Section shall | 11 | | not apply to or be allowed
against any money, salary, or wages | 12 | | due or to become due to the debtor that
are required to be | 13 | | withheld in a wage
deduction proceeding under Part 8 of this
| 14 | | Article XII.
| 15 | | (Source: P.A. 100-922, eff. 1-1-19 .)
| 16 | | Section 99. Effective date. This Act takes effect upon | 17 | | becoming law.
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