The Indiana bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Indiana. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Indiana you may also use certain federal exemptions in addition to your Indiana exemptions.
ASSET | EXEMPTION DESCRIPTION | LAW SECTION |
HOMESTEAD also see wild card | Real or personal property used as residence to $17,600 (husband and wife may double) | 34-55-10-2(b)(1) 34-55-10-2(c) |
Property held as tenancy by the entirety may be exempt against debts incurred by only one spouse | 34-55-10-2(b)(5) | |
INSURANCE | Fraternal benefit society benefits | 27-11-6-3 |
Group life insurance policy | 27-1-12-29 | |
Life insurance policy; proceeds, cash value or avails if beneficiary is insured's spouse or dependent | 27-1-12-14 | |
Life insurance proceeds if clause prohibits proceeds to used to pay beneficiary's creditors | 27-2-5-1 | |
Mutual life or accident proceeds | 27-8-3-23 | |
MISC. | Property of business partnership | 23-4-1-25 |
PENSIONS | Firefighters | 36-8-7-22, 36-8-8-17 |
Police officers (only benefits building up) | 10-1-2-9, 36-8-8-17 | |
Public employees | 5-10.3-8-9 | |
Public or private retirement benefits | 34-2-28-1 (a)(6) | |
Sheriffs (only benefits building up) | 36-8-10-19 | |
State teachers | 21-6.1-5-17 | |
PERSONAL PROPERTY | Health aids | 34-2-28-1 (a)(4) |
$100 on any intangible personal property, except money owed to you | 34-2-28-1 (a)(3) | |
PUBLIC BENEFITS | Crime victims' compensation unless seeking to discharge debt for treatment of injury incurred during the crime | 12-18-6-36 |
Unemployment compensation | 22-4-33-3 | |
Workers' compensation | 22-3-2-17 | |
TOOLS OF TRADE | National guard uniforms, arms and equipment | 10-2-6-3 |
WAGES | Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors | 24-4.5-5-105 |
WILD CARD | $4,000 of any real estate or tangible personal property | 34-55-10-2(b)(2) |
For more information on filing bankruptcy in Indiana explore Indiana Bankruptcy Law.
