In accordance with the provision of Section 522(b) of the Bankruptcy Code of 1978, (11 U.S.C. 522(b)), residents of this State shall be prohibited from using the federal exemptions provided in Section 522(d) of the Bankruptcy Code of 1978 (11 U.S.C. 522(d)), except as may otherwise be permitted under the laws of Illinois.
12-1201.Bankruptcy exemption.
Article XII. Judgments - Enforcement · Part 12. Exemption in Bankruptcy · Not amended since adoption on record · Last verified July 20, 2026
In one sentenceOpts Illinois out of the federal bankruptcy exemptions, so residents generally must use Illinois's own exemption list instead of the federal one, unless state law permits otherwise.
Full Text of 735 ILCS 5/12-1201
Plain-English Summary
Federal bankruptcy law lets a state opt its residents out of the exemptions Congress wrote into the Bankruptcy Code. This section is Illinois's opt-out: relying on Section 522(b) of the Bankruptcy Code of 1978, it prohibits Illinois residents from using the federal exemptions listed in Section 522(d), except as otherwise permitted under Illinois law.
The practical effect ties a bankruptcy filer back to the state's own exemption scheme — the homestead exemption, the personal-property exemptions, and the retirement-plan exemption covered elsewhere in this Article — rather than the federal list.
Frequently Asked Questions
Can an Illinois resident choose the federal bankruptcy exemptions instead of the state ones?
No. This section prohibits using the federal exemptions in Section 522(d) of the Bankruptcy Code, except as otherwise permitted under Illinois law.
What federal provision does this section rely on?
Section 522(b) of the Bankruptcy Code of 1978.
What exemptions does an Illinois resident use in bankruptcy instead of the federal list?
The exemptions available under Illinois law, including the homestead, personal-property, and retirement-plan exemptions covered elsewhere in this Article.
Does this section itself list any exemption dollar amounts?
No. It addresses only which exemption scheme applies, not specific amounts.
Is there any way around this opt-out?
Only as otherwise permitted under the laws of Illinois.
Amendment History
(Source: P.A. 82-280.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as: illinois bankruptcy exemption opt outcan i use federal bankruptcy exemptions in illinoisillinois state exemptions in bankruptcyillinois opt out state bankruptcy exemptions