What is exempt from bankruptcy in Indiana?

Persons considering filing Chapter 7 in the state of Indiana, assuming they meet residency and eligibility requirements, can claim exemptions solely from the list of exemptions derived from the Indiana Statutes Annotated. Federal exemptions are not allowed in the state of Indiana for filers under Chapter 7. Before considering exemptions available when filing for bankruptcy, a debtor should consult with a bankruptcy attorney in the state of Indiana, or their applicable state of residency, to determine a number of issues, including residency and eligibility to file. From there, legal counsel can provide competent and comprehensive insight into the applicable exemptions a debtor may claim in their Chapter 7 case, which will vary based on the nature of the filing and the assets held by the debtor, in light of Indiana exemptions lists. The following list outlines the most common and general exemptions allotted under Indiana statutes, but debtors should recognize that the following list is by no means exhaustive or entirely applicable to their personal case.

• Homestead exemption up to value of $7,500, with caveat that homestead plus personal property exemptions claimed cannot exceed $10,000, less certain personal property items, such as medical aids

• Any property from a business partnership, save for instances involving fraudulent conveyance, will be exempt

• Most insurance benefits, including group benefits, life insurance proceeds, and fraternal benefit society benefits, will be exempt

• Pensions of public workers, including teachers, law enforcement, and firefighters, are exempt

• Public benefits, such as workers compensation, crime victim compensation, and unemployment benefits, are exempt

• At least seventy-five (75) percent of all wage earned, yet unpaid are exempt, but in cases of low income earners, at the court’s discretion, this amount may be increased

• A wildcard provision allows exemption of up to $4,000 of real property

If you are considering filing Chapter 7 bankruptcy, consult with a bankruptcy lawyer in the state of Indiana for more information about your legal rights and options, specifically your legal options for claiming exemptions under Indiana bankruptcy laws.