What Property Is Exempt During Bankruptcy?
Keeping Your Assets in Bankruptcy
As you file for bankruptcy, it is important to know that this is an action that can change your life in many ways. You might have considered what you stand to lose in a bankruptcy and wondered what assets may be exempt. At Jackson & Oglesby Law LLC, we consistently help clients across Indiana understand the details of the process, obtain debt relief and keep the assets that they can.
Possible Exemptions in Indianapolis, IN
Your nonexempt assets can be liquidated to pay back your creditors, but many individuals are able to keep all of their personal property. Under federal and state bankruptcy laws, people who file are able to exempt certain property from liquidation. Under Indiana law, there are three main exemptions: homestead exemption, personal property exemption and general intangible exemption.
Homestead exemptions protect a set amount of equity within one's home or principal residence. An individual who files for bankruptcy is allowed to exempt up to $17,600 of their exposed home equity. Joint filers can exempt up to $35,200. Additionally, interest that debtors have in a real estate can be exempt under Indiana Code Ann. § 34-55-10-2.
Personal Property Exemption
Any personal property, including furniture, clothing, and automobiles, can be considered a personal property exemption. If you are filing under Chapter 7, you can be exempt up to $9,350 and up to $18,700 for joint filers in nonresidential real estate or tangible property. Note that this exemption applies to the value of the property, not what you paid.
General Intangible Exemption
General intangible exemption is worth up to $350 in intangible personal property and up to $700 for joint filers. Money in savings accounts, checking accounts, and on hand is all included in this exemption along with what is kept in an IRA or 401(k) plan. In order to qualify, you will have to show that you lived in Indiana for the majority of the past two years. You can use the federal bankruptcy exemptions if you do not qualify.
Comprehensive Legal Guidance in Indianapolis, Greenwood & Muncie
It is essential to work with an attorney at our firm who understands the issues that you will likely face. At Jackson & Oglesby Law LLC, we offer free bankruptcy evaluations to discuss what type of bankruptcy is most efficient for you. For your convenience, evening and weekend appointments are available. Our attorneys meet personally with each client to discuss their unique financial circumstances. We are a debt relief agency committed to providing the legal aid that the people of our community need. Find out what you will be able to keep after bankruptcy by
contacting our firm at once.