Filing for bankruptcy can be a daunting process – especially for those who fear losing their assets and beloved possessions. Many people don’t know that there are a set of exemptions in place that allow debtors to protect some property when filing for bankruptcy. Our Indianapolis bankruptcy attorneys explain the Indiana bankruptcy exemptions below.
Indiana Bankruptcy Exemptions
Every state has its own set of exemptions that allow debtors to keep some of their assets after bankruptcy. In Indiana, you can protect property covered by an exemption regardless of whether you file for Chapter 7 or Chapter 13 bankruptcy. Below is a list of Indiana bankruptcy exemptions.
- Homestead Exemption: You can protect up to $19,300 of real estate or tangible personal property equity. Indiana's homestead exemption applies to residential property or tangible personal property (such as a mobile home) as long as it is your personal or family residence. Spouses who co-own a home can double the exemption amount.
- Motor Vehicle Exemption: Indiana does not have a specific motor vehicle exemption, but you can use Indiana's wildcard exemption to protect the equity in your car, truck, van, or another vehicle.
- Wildcard Exemption: You can protect any nonresidential real estate or tangible property of your choosing up to a value of $10,250. You can also protect up to $400 of intangible personal property.
- Other Exemptions: You can protect pensions and retirement benefits. You can also protect personal property, such as health aids, educational savings accounts, and more. In addition to that, insurance benefits and unemployment compensation benefits are protected.
How to Protect Your Property During Bankruptcy
In most cases, debtors do not automatically get to keep exempt property. Debtors must follow specific steps to protect property applicable in Indiana exemption laws. Failing to file the required paperwork could cause you to lose your assets.
Need help protecting your assets during bankruptcy? Contact our Indianapolis bankruptcy lawyers today at (888) 713-5148 to schedule a consultation!