Indiana Bankruptcy Exemptions

Federal bankruptcy exemptions are not available in the State of Indiana.

There is property that you can exempt or protect from creditors when you file bankruptcy. You have the option of utilizing the state exemptions. After you file for bankruptcy, this property can be kept. Be aware that there are certain debts, which you will not be able to erase in bankruptcy. These are identified as non-dischargeable debts.

There are some limits on certain exemptions such as equity that you have in a home or in a vehicle. The difference between the cost of the item and the amount owed on the item is the definition of equity. If the item, such as home or vehicle, is secured by a loan and payments are made on time, the equity is protected by your exemptions. A debtor must generally pay the trustee the value of the non-exempt property to keep the property. If you choose to keep the property, continual timely payments ensure that the property is protected through the bankruptcy.

For married couples filing jointly in bankruptcy, each can claim a full set of exemptions, unless otherwise noted.

Assets

Homestead: Real or personal property used as residence to $15,000, Property held as tenancy by the entirety may be exempt against debts incurred by only one spouse

Insurance: Group life insurance policy, Fraternal benefit society benefits, life insurance policy; proceeds, cash value or avails if beneficiary is insured’s spouse or dependent, Life insurance proceeds used to pay beneficiary’s creditors, Mutual life or accident proceeds, An employer’s life insurance policy on an employee

Miscellaneous: Property of business partnership

Pensions: Police officers (only benefits building up), Firefighters, Police officers, Public employees, Public or private, etirement benefits and contributions, Sheriffs (only benefits building up), State teachers, Health aids, tax-exempt retirement accounts, including 401(k)s, 403(b)s, profit-sharing purchase plans, SEP and SIMPLE IRAs, and defined-benefit plans, Traditional and ROTH IRAs to $1,095,000 per person

Personal Property: *See also Wildcard, Health aids, Up to $300 of intangible personal property (except money owed to you), Up to $8,000 of real estate or tangible personal property, Medical savings account, Spendthrift trusts

Public Benefits: Crime victims’ compensation unless seeking to discharge debt for treatment of injury incurred during the crime Unemployment compensation, workers’ compensation

Tools of Trade: National Guard uniforms, arms, and equipment

Wages: Minimum 75% of earned but unpaid wages, or 30 times the federal hourly minimum wage; bankruptcy judge may authorize more for low income debtors

Wildcard: $4,000 of any real estate or tangible property (husband and wife may double)

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