Chapter 7 bankruptcy is known as liquidation bankruptcy because you liquidate some of your assets to repay creditors. However, all states, including Indiana, have exemptions. These exemptions allow you to protect certain property from liquidation. In this article, the Indiana bankruptcy attorney, Chris Arrington, will discuss how Chapter 7 exemptions work in the State of Indiana.
When can you use Indiana’s bankruptcy exemptions?
You must live in Indiana for at least 180 days before filing for bankruptcy in the state. However, to use Indiana’s bankruptcy exemptions, you must have lived in Indiana for 730 days before filing for bankruptcy. Otherwise, you could either use federal exemptions or your previous state’s bankruptcy exemptions.
Indiana’s homestead exemption
Indiana allows you to protect up to $22,700 of equity in real estate or tangible personal property. This is known as the homestead exemption. Indiana’s homestead exemption applies to residential property or tangible personal property (such as a mobile home). This must be your place of residence. It can include a home, condominium, trailer, or farm.
Spouses that file together and co-own a home can double the exemption amount. You may also be able to use tenancy by the entirety to exempt a piece of real estate. You should, however, consult with an attorney before attempting this, however.
Indiana’s motor vehicle exemption
Some states have specific motor vehicle exemptions. Indiana does not. Instead, you can use Indiana’s wildcat exemption to protect equity in a motor vehicle. We’ll talk more about the wildcard exemption below.
Indiana’s wildcard exemption
Indiana’s wildcard exemption can be used to protect other assets such as retirement accounts, vehicles, or valuable personal property. Indiana’s wildcard exemption allows you to protect tangible property up to $12,100. You can also protect up to $400 in intangible personal property.
Other exemptions under Indiana law
- Pensions, retirement accounts, or IRA accounts
- Personal property such as uniforms, arms, military equipment
- Health aids
- Medical care savings accounts
- Health savings accounts
- Qualified tuition programs
- Education savings accounts
- Interest in a refund or earned income credit for exempt bankruptcy property
- A spendthrift trust
- Insurance benefits such as life insurance policies that name a spouse, children, or other dependents
- Unemployment compensation benefits
- Workers compensation benefits (except for child support claims)
- Specific partnership property
- Lesser of 75% of earned but unpaid wages or 30 times the federal minimum wage
Talk to a Chapter 7 Bankruptcy Attorney Today
Filing for bankruptcy is a difficult decision, but often, you have no choice. While you will be expected to liquidate non-exempt property, Indiana has a generous amount of exemptions that allow you to keep some of your personal property. If you have to file for bankruptcy, you will need a skilled Dansville, IN, bankruptcy attorney to help you through the process. We can help you protect specific property from liquidation and ensure that your debts are completely discharged when the process is over. Call Chris Arrington’s office today to learn more.