In Re Bird

OPINION

LARRY L. LESSEN, Bankruptcy Judge.

The issue before the Court is whether, and to what extent, life insurance proceeds paid to the Debtor as a result of her husband’s death, are exempt under 735 ILCS 5/12-1001.

On June 20, 2001, Debtor’s husband passed away. In mid-July, 2001, Debtor received life insurance proceeds in the amount of $150,000. On July 13, 2001, Debtor filed her voluntary Chapter 7 petition in bankruptcy. On her Schedule B— Personal Property, Debtor listed the insurance proceeds in the amount of $150,000. On her Schedule C — Property Claimed as Exempt, Debtor claimed the…