Indiana Bankruptcy Exemptions

The Indiana bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Indiana. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)

An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.

If the property is secured by a loan, such as a car or home, and you are current on the payments and the equity is covered by your exemptions, you may elect to keep making payments on the loan and keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the proceeds. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.

Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.

To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.

When you file bankruptcy in Indiana you may also use certain federal exemptions in addition to your Indiana exemptions.

ASSET

EXEMPTION DESCRIPTION

LAW SECTION

HOMESTEAD

also see wild card

Real or personal property used as residence to $17,600 (husband and wife may double)

34-55-10-2(b)(1)

34-55-10-2(c)

 

Property held as tenancy by the entirety may be exempt against debts incurred by only one spouse

34-55-10-2(b)(5)

INSURANCE

Fraternal benefit society benefits

27-11-6-3

 

Group life insurance policy

27-1-12-29

 

Life insurance policy; proceeds, cash value or avails if beneficiary is insured's spouse or dependent

27-1-12-14

 

Life insurance proceeds if clause prohibits proceeds to used to pay beneficiary's creditors

27-2-5-1

 

Mutual life or accident proceeds

27-8-3-23

MISC.

Property of business partnership

23-4-1-25

PENSIONS

Firefighters

36-8-7-22, 36-8-8-17

 

Police officers (only benefits building up)

10-1-2-9, 36-8-8-17

 

Public employees

5-10.3-8-9

 

Public or private retirement benefits

34-2-28-1 (a)(6)

 

Sheriffs (only benefits building up)

36-8-10-19

 

State teachers

21-6.1-5-17

PERSONAL PROPERTY
also see wild card

Health aids

34-2-28-1 (a)(4)

 

$100 on any intangible personal property, except money owed to you

34-2-28-1 (a)(3)

PUBLIC BENEFITS

Crime victims' compensation unless seeking to discharge debt for treatment of injury incurred during the crime

12-18-6-36

 

Unemployment compensation

22-4-33-3

 

Workers' compensation

22-3-2-17

TOOLS OF TRADE

National guard uniforms, arms and equipment

10-2-6-3

WAGES

Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low-income debtors

24-4.5-5-105

WILD CARD

$4,000 of any real estate or tangible personal property

34-55-10-2(b)(2)

For more information on filing bankruptcy in Indiana explore Indiana Bankruptcy Law.