By Illinois statute, debtors are entitled to “an estate of homestead” of up to $15,000 in property used as his or her residence. The homestead and all right in and title to that homestead is exempt from sale for the payment of his or her debts. 735 ILCS 5/12‑901.
Additionally, when married couples file jointly, each spouse is entitled to the full exemption for a total of $30,000. This is known as doubling.
So, assume for example, a couple filing Chapter 7 owns a $150,000 home with $125,000 remaining on the balance of their mortgage. Their equity in the home is $25,000. Read the rest of this entry