Chicago Attorney Steven J. Grace

New Illinois Bankruptcy Exemptions in 2026: What Debtors Can Keep

new exemption relief from Public Act 104-0120

Asset Protection, Bankruptcy, Citations to Discover, Collection Defense / Steven J. Grace

Illinois has finally updated its exemption laws for the first time in decades, giving families stronger protections in both bankruptcy and collection defense. Starting January 1, 2026, Public Act 104-0120 raises the Illinois homestead exemption to $50,000 per person ($100,000 joint), increases protections for vehicles and tools of the trade, creates a new $5,000 household goods exemption, and streamlines bank account freezes with a $1,000 automatic exemption. These changes mean more homeowners can keep their equity, more debtors can shield everyday property, and citation return hearings will be simpler and faster.

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Foreclosure Myths in Illinois

Foreclosure / Steven J. Grace

Homeowners in Illinois facing foreclosure are often bombarded with misleading legal advice. Common myths such as “the bank can’t foreclose without the original note” or “securitization eliminates the lender’s right to foreclose” continue to circulate online and in courtrooms. But Illinois law does not support these claims. This article sets the record straight using real case law, statutory authority, and clear language to explain what the courts actually require and why relying on misinformation can put your home at risk.

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Vacating Old Judgments in Illinois

Collection Defense, Motion to Vacate / Steven J. Grace

Blindsided by an old Illinois judgment? Learn how to vacate it with a 2-1401 petition—stop garnishments, unfreeze accounts, and protect your rights.

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Exempt Income in Bankruptcy

Exempt Income / Steven J. Grace

Properly reporting exempt income in bankruptcy—such as Social Security, disability benefits, or retirement distributions—is critical to avoiding costly mistakes. This guide explains how exempt income is treated under the Bankruptcy Code, the difference between Schedule I and the means test, and why these rules matter in both Chapter 7 and Chapter 13 cases. Learn how to protect your income, ensure compliance, and maximize your chances of receiving a discharge.

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The Single-Refiling Rule in Illinois Foreclosures

Foreclosure / Steven J. Grace

The single-refiling rule in Illinois foreclosure practice is notoriously complicated. One court may view a complaint as a “new” cause of action, while another may dismiss an almost identical complaint for violating the one-refile limit. Add to that the complexities of trusts as separate legal entities, privity questions, and the unusual structure of securitized mortgage

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Challenging Improper Service of Process in Illinois

man using a compass to navigate Illinois process service law

Motion to Quash / Steven J. Grace

Proper service of process is critical in any Illinois lawsuit, whether it involves debt collection, foreclosure, or judgment revival. If a defendant isn’t properly served, the court may have no jurisdiction to hear the case. This guide explains why service of process matters, how to challenge defective service with a motion to quash, and practical tips for defending yourself. Learn how Illinois law governs service on individuals, corporations, and LLCs, and discover what steps can help you successfully fight back against improper service.

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Employer’s Guide to Wage Garnishment

Citations to Discover / Steven J. Grace

Learn how to respond to a Citation to Discover Assets to Debtor’s Employer. This guide explains your legal obligations, how to complete the required forms, and what to do if you’re served. Avoid penalties and protect your business with these actionable steps.

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The Overlooked Dangers of Wage Garnishments in Illinois

Citations to Discover, Debt Collection / Steven J. Grace

This guide explains how Illinois creditors use garnishments, citations, and turnover orders to recover judgments. Learn how the Illinois Wage Deduction Act affects your wages, why funds in your bank account may not stay protected, and steps you can take to safeguard your finances.

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Insider Tips for Getting a Loan Modification in Illinois

Loan Modification / Steven J. Grace

Struggling with your mortgage in Illinois? Loan modifications can make your payments more affordable and help you keep your home. This guide shares expert tips, common pitfalls, and strategies for success. Learn how to stay organized, avoid mistakes, and navigate servicer challenges with confidence. Don’t let setbacks derail your financial future—take control of the process today.

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What to Know About Illegal Loan Interest in Illinois

Payday Loans / Steven J. Grace

High-interest loans have caused major challenges for many in Illinois, particularly those with lower incomes. These loans often charge excessive or illegal interest rates, trapping borrowers in cycles of debt that are hard to escape. To address this, Illinois passed the Predatory Loan Prevention Act, effective March 23, 2021, capping consumer loan interest rates at 36% APR. This law applies to payday loans, car title loans, and other high-cost loans, offering critical protections against predatory lending practices. Learn how this law works, what to do if your loan violates the rules, and how we can help you take action.

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Author name: Steven J. Grace