Bankruptcy Law: Keep Property With Consumer Goods Exemption

For today’s blog post, we’ll continue our discussion of Bankruptcy Law exemptions important for our Beloit Bankruptcy Law and Rockford Bankruptcy Law clients to be aware of.

In addition to Motor Vehicle Exemption and Homestead Exemption, Consumer Goods Exemptions are critical for those considering bankruptcy to fully investigate prior to declaring.

Knowledge of these exemptions—including how they differ by Federal, Wisconsin, and Illinois bankruptcy law—can help individuals and families keep property essential to maintaining quality of life during the course of, and following bankruptcy.

Federal Consumer Goods Exemptions law—the most general of three Consumer Goods Exemption laws relevant to our readers—allows debtors to exempt the following property:

• Household Goods & Furnishing
• Wearing Apparel
• Home Appliances
• Books
• Animals
• Crops
• Musical Instruments

As with other Exemptions we’ve covered, monetary amounts differ depending on marital status:

• Individuals are allowed up to $11,525 in consumer goods exemptions.
• Married couples are allowed up to $23,050 in exemptions.

Relevant for our Beloit Bankruptcy Law audience, Wisconsin Consumer Goods Exemptions law allows for debtors to exempt the following property:

• Household Goods & Furnishings
• Wearing Apparel
• Keepsakes
• Jewelry
• Appliances
• Books
• Musical Instruments
• Firearms
• Sporting Goods
• Animals
• Other tangible personal property

Wisconsin Consumer Goods Exemptions law allows comparable exemption amounts to Federal Law:

• Individuals are allowed to exempt up to $12,000.
• Married couples can exempt up to $24,000.

Unlike Federal and Wisconsin Consumer Goods Exemptions, there are several variations on the law in Illinois:

Covers:

• Necessary Wearing Apparel
• Bible
• School Books
• Family Pictures

Exemption amount: no limit.

Covers:

• Implements
• Professional Books
• Trade Tools

Exemption amount:

• Individuals are allowed to exempt up to $1,500.
• Married couples are allowed to exempt up to $3,000.

Fortunately for our Rockford Bankruptcy Law audience, Illinois law allows for the use of the Wildcard Exemption—an exemption used for anything not covered by a separate exemption, to supplement another exemption.

Exemption amount:

• Individuals are allowed to exempt up to $4,000.
• Married couples are allowed to exempt up to $8,000.

In order to take full advantage of Consumer Goods Exemption, be sure to consult an experienced Bankruptcy Law attorney familiar with your state’s unique laws.