Public Act 104-0120

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.