Indiana Bankruptcy Exemptions

Related Ads

Talk to a Bankruptcy Lawyer

Contact a Qualified Lawyer. Understand Your Legal Rights.
Zip Code:

Like all states, Indiana has its own set of exemptions that you may use when filing for Chapter 7 or Chapter 13 bankruptcy. Exemptions determine what property (such as a home, car, instrument, retirement account, etc.) you may keep in a Chapter 7 bankruptcy, and how much you must pay to certain creditors in Chapter 13 bankruptcy. Some states allow debtors to choose between the state exemption system and a set of federal bankruptcy exemptions – but Indiana is not one of them. In Indiana, you must use the state exemptions below. In addition to this list, you may also use any applicable amounts in the federal nonbankruptcy exemptions.

Unless noted otherwise, if a couple is married and filing jointly in Indiana, each spouse may claim the full amount of each exemption. This is informally called “doubling.”

To learn more about bankruptcy exemptions, including how they work, which state exemption system you should use, and special rules for the homestead exemption, see Bankruptcy Exemptions – What Can I Keep When I File for Bankruptcy? 

Indiana Bankruptcy Exemptions

Unless otherwise noted, all law references are to the Indiana Statutes Annotated.

Homestead

34-55-10-2 - Real or personal property used as a residence up to $17,600; tenancies by the entirety may be exempt from debts incurrecy by only one spouse.

Personal Property

30-4-3-2 - Spendthrift trusts.

34-55-10-2 - Health aids; funds in medical savings accounts and health savings accounts; up to $350 of intangible personal property (except for money owed to you); earned income tax credit; 

34-55-10-2(c)(9), (10) - Education savings account (529 and Coverdell) contributions made more than 2 years prior to filing; contributions made more than 1 but less than 2 years prior to filing to $5,000; no exemption for contributions made less than 1 year prior to filing.

Wages

24-4.5-5-105 - Either minimum of 75%° of earned but unpaid wages or 30 times the federal minimum hourly wage: whichever is greater. Judge may approve more for low-income debtors. 

(In re Haraughty, 403 BR 607 (Bankr. SD Indiana 2009).)

Pensions

11 U.S.C. § 522 - Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans). 

11 U.S.C. § 522(b)(3)(C)(n) - IRAS and Roth IRAs to $1,171,150.

5-10.3-8-9 - Public employees.

36-8-8-17 & 10-12-2-10 - Police officers.

5-10.4-5-14 - State teachers.

34-55-10-2 - Public or private retirement benefits.

36-8-7-22 & 36-8-8-17 - Firefighters.

36-8-10-19 - Sheriffs

Public Benefits

5-2-6.1-38 - Crime victims' compensation, unless seeking to discharge debt for treatment of crime-related injury for which compensation has already been received.

34-15-8; 34-55-10-2 - Supplemental state fair relief fund

22-3-2-17 - Workers' compensation.

22-4-33-3 - Unemployment compensation.

34-55-10-2(c)(12) - Veterans' disability benefits.

Tools of Trade

10-16-10-3 - National guard arms, uniforms, and equipment.

Insurance

27-1-12-14 - Life insurance policy or proceeds if beneficiary is spouse or dependent.

27-1-12-29 - Group life insurance policy.

27-2-5-1 - Life insurance proceeds if policy prohibits use to pay creditors.

27-8-3-23 - Mutual life or accident policy proceeds as needed for support.

27-11-6-3 - Fraternal benefit society benefits.

27-1-12-17.1 - Employer's life insurance policy on an employee.

Misc.

23-4-1-25 - Business partnership property.

Wildcard

34-55-10-2(c)(2) - $9,350 of real estate or tangible personal property.

Other 

Add any applicable Federal Nonbankruptcy Exemptions.

Confirming Exemptions

This list includes the majority of bankruptcy exemptions available in Indiana. However, it may not include all exemptions, and states often create exceptions to specific exemptions. In addition, Indiana may have changed the amounts since this list was last updated in June of 2011. Consider cross-checking this list with www.legalconsumer.com, which updates the state exemption amounts regularly, or check with your local bankruptcy court. 

 

Talk to a Bankruptcy Lawyer

Start here to find bankruptcy lawyers near you.
HOW IT WORKS
how it works 1
Briefly tell us about your case
how it works 2
Provide your contact information
how it works 1
Choose attorneys to contact you
LA-NOLO6:DRU.1.6.5.20141022.29090