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SB 1501

HOMESTEAD EXEMPTION INCREASE

104th Regular Session Introduced by Mike Halpin

Illinois raises homestead and related exemptions, shielding larger home, property, vehicles, and wages from garnishment (30 days) and updating enforcement rules.

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Bill Summary · SB 1501

Summary — SB 1501: Homestead Exemption Increase

Note: The provided document contains multiple, unrelated "SB 1501" drafts from different states. This summary focuses on the provision titled “HOMESTEAD EXEMPTION INCREASE” as introduced in Illinois (LRB text) — the portion that amends the Code of Civil Procedure to raise property and related exemptions.

Main purpose

To substantially increase statutory exemption amounts available to judgment debtors in Illinois — primarily the homestead exemption — and to make related conforming changes to garnishment, citation and enforcement procedures. The bill also temporarily protects wages directly deposited to a debtor’s account from garnishment for 30 calendar days.

Key provisions

  • Homestead exemption (estate in homestead, when owned and occupied as a residence):
    • Single-owner residence: increase from $15,000 → $100,000.
    • Residence owned by two or more individuals: increase from $30,000 → $200,000.
  • Other exemption increases:
    • Personal property exemption: $4,000 → $27,000.
    • Motor vehicle equity exemption (per vehicle): $2,400 → $16,000.
    • Tools/implements/professional books (tools of trade): $1,500 → $10,000.
    • Personal injury (exemption of damages): $15,000 → $100,000.
  • Garnishment/wages: Exempts from garnishment, for 30 calendar days, wages electronically deposited directly into a judgment debtor’s checking or savings account at a financial institution.
  • Conforming and cross-reference adjustments to multiple sections of the Code of Civil Procedure to reflect new exemption amounts and related enforcement mechanics.
  • Changes affect validity and effect of releases/waivers, distribution of sale proceeds, bidding rules where sale bids are under exempt amounts, notice to debtors, and procedures to enforce judgments.

Who would be affected

  • Beneficiaries: judgment debtors (individual homeowners, wage earners, vehicle owners, tradespeople) — increased protections from creditors and execution.
  • Impacted parties: creditors, judgment holders, garnishees, sheriffs/levying officers, and courts (who will apply higher exemption thresholds and altered enforcement rules).
  • Financial institutions (payee of direct deposits) may see procedural changes related to short-term protection of deposited wages.

Procedural / timeline notes

  • Illinois bill (LRB10407375JRC17415b) was introduced 2/4/2025 by Sen. Michael W. Halpin (per the LRB text).
  • The draft amends multiple Code of Civil Procedure sections (notably provisions at or derived from Ch. 110: 2‑1402, 12‑704, 12‑901, 12‑904, 12‑906, 12‑909–12‑912, 12‑1001).
  • The dataset supplied contains legislative actions and enactment items for other states’ bills with the same number; the current enactment status for this Illinois proposal should be verified with the Illinois General Assembly or legislative tracking resources.

Potential impacts / considerations

  • Increases debtor protections substantially and would reduce amounts collectible by creditors through garnishment or execution.
  • Could affect creditor recovery rates and the calculus for collections litigation.
  • Short-term wage deposit protection may require creditors to use alternate collection steps or wait periods.
  • Implementation will require updates to court forms, creditor notice language, and training for clerks and enforcement officers.

If you want, I can:
- Produce a version that highlights exact statutory text changes (by section).
- Compare this proposal with existing Illinois exemption law and examples of collection scenarios under the new thresholds.
- Track current bill status and votes in the Illinois legislature.

Compiled from official sources — confirm details with the bill’s official record.

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