Filing for bankruptcy is no one’s idea of a good time. It is a last resort that is there for folks who are in insurmountable debt. Chapter 7 bankruptcy, also known as liquidation bankruptcy, provides relief from debt, but there is a chance that some of your assets could be liquidated during the process. What many folks do not know is that there are specific exemptions under the law that allow you to protect some of your assets while filing for Chapter 7 bankruptcy. In this article, the Danville, IN, bankruptcy attorney, Chris Arrington, will discuss Chapter 7 exemptions in Indiana. 

Chapter 7 bankruptcy exemptions in Indiana

Every state has its own set of exemptions when it comes to Chapter 7 bankruptcies. These exemptions allow debtors to protect some of their assets from Chapter 7 liquidation. In addition, those filing under Chapter 13 can also protect their property with Indiana’s bankruptcy exemptions. Indiana’s bankruptcy exemptions include:

• The homestead exemption – This Chapter 7 bankruptcy exemption allows you to protect up to $19,300 of either real estate or tangible personal property equity. Indiana’s homestead exemption applies to both residential property and tangible personal property (such as a mobile home) so long as it is your personal or family residence. Spouses who file for bankruptcy together can double their homestead exemption. 
• Motor vehicle exemption – Many states allow you to protect some of the equity on your motor vehicle during a Chapter 7 bankruptcy. However, Indiana is not among those states. Instead, you can use Indiana’s wildcard exemption to protect equity in your motor vehicle. This is especially useful for those who need a vehicle to get to and from their job. 
• Wildcard exemption – The State of Indiana allows those who file under Chapter 7 to protect nonresidential real estate (homes that you don’t live in) or tangible property up to a value of $10,250. Indiana also allows you to protect up to $400 of intangible personal property. The wildcard exemption can be applied to any asset you own, including your personal vehicle. 
• Other exemptions – Certain assets are automatically protected under Indiana’s bankruptcy laws. These include pensions and retirement accounts. You can also protect certain forms of personal property, such as health aids, educational savings accounts, and other assets. In addition, insurance benefits and unemployment compensation are both protected. 

Protecting your property with Indiana’s bankruptcy exemptions

The process of filing for bankruptcy is complicated, and there is much you need to know to ensure the process does not go off the rails. Having a skilled Indiana bankruptcy attorney by your side during the process ensures that you can exempt and protect all the important property you want.

Talk to a Danville, IN, Bankruptcy Lawyer Today

Chris Arrington represents the interests of Danville, IN, residents who need to file for Chapter 7 or Chapter 13 bankruptcy. Call our office today to schedule an appointment, and we can begin discussing your next steps right away.