When you file for a Chapter 7 bankruptcy in Indiana the law provides for bankruptcy exemptions for real and personal property that you can keep. A Chapter 7 bankruptcy is a liquidation. This means that the court is looking for non-exempt stuff that you own that they could sell to make some money to pay your creditors something. This doesn’t mean you should give up on saving your assets when you file for bankruptcy. Indiana’s exemptions can be used to protect your home, insurance benefits, retirement funds, sentimental items, and more. Here’s how bankruptcy exemptions work in the state of Indiana.
How Does A Bankruptcy Exemption Protect My Home?
Indiana’s homestead exemption is $19,300 of equity per filer. The frustrating part is that $19,300 isn’t much home value. If you’ve already paid off the mortgage on a $100,000 home, it would be heartbreaking to lose it. Even the family cabin your grandfather built with his own two hands could be sold at auction. However, don’t let this put you off filing for bankruptcy. Your attorney can help you use exemptions to protect your assets. If you select Chapter 13 bankruptcy, you might have a good shot at saving your home.
Does Indiana Have an Auto Exemption?
The answer to this is both yes and no. Unlike many states, Indiana does not have a specific exemption for motor vehicles of any kind. However, you can use Indiana’s personal property exemption to protect up to $10,250 in personal property, including equity in a vehicle.
What is The Personal Property Exemption?
In Indiana, the personal property exemption can be used to protect personal property up to a value of $10,250 during bankruptcy. This includes equity in non-residential real estate, vehicles, work gear, personal possessions and most other kinds of tangible property. Use this exemption to prevent losing cash and treasured valuables like art, jewelry or a collection of memorabilia.
Are There Other Types of Exemptions in Indiana?
There is an intangible asset exemption that protects up to $400 per filer in cash or cash equivalents such as money in bank accounts at the time of filing. Indiana also has other types of exemptions that protect specific kinds of assets. An Insurance Benefits exemption can protect life and accident insurance policy values. Pension and retirement benefits can usually be protected, too. Workers’ compensation and unemployment benefits are 100% exempt in Indiana. You can usually save 75% of earned but unpaid wages, or 30 times the Federal minimum wage. If you’re concerned about keeping your wages, benefits and other assets, speak to a bankruptcy attorney as quickly as possible.
Sawin & Shea – Indianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.