Use the information on this page for planning an Indiana Bankruptcy. Start out by referencing both this chart and the Kentucky chart on exemptions. However, you cannot use the Federal exemptions in Indiana. Instead, you must reference the smaller state exemptions for Indiana.
Also, ensure that you spend your tax refund before filing. Then, proceed to keep a low amount of money in your bank account on the date of filing. In fact, in Indiana, you must also ensure that the intangible property which is your combined tax refund and bank account balance is below $350. This is because Debtors who file cannot keep more than $350 in intangible assets.
Blank amounts in the individual or jointly owned column mean the exemption is normally unlimited. Social security and retirement benefits are examples of benefits the trustee cannot normally take. Also, note that Federal Exemptions adjust at least annually with the cost of living.
What You Need to Know About Indiana Bankruptcy Exemptions
Below, are both the Federal chart on exemptions and the Indiana chart. Please note, Indiana bankruptcy exemptions do not increase often or automatically.
Federal bankruptcy exemptions chart.
| Property Value
What the property brings on a quick sale. |
Minus Amt Owed
Deduct the part the bank or car lot owns. The remainder is your equity and what part you own. |
Equals
Your equity and what you own in the property. Only use an exemption if you need it. |
Minus Your Exemption
If you own some part of the property your exemption is how much you can keep (Increase in parenthesis.) |
Amount to Trustee
If you have more property than what you can keep you will owe this amount to the trustee in Chapter 7. In Chapter 13, your case must pay the equal of this column. |
| This is a worksheet. Exemptions are for 2020 and may have increased. The first row is an example. | ||||
|---|---|---|---|---|
| Home $148,000 | Mortgages and other liens $70,000 | Equity $78,000 |
Minus your exemption (2 x $25,150) per person on deed $50,300 for your personal residence Otherwise reduce by 50% as a wildcard | The excess above exemption and amount a Chapter 13 would have to repay.
$30,650 or what creditors would receive, which is slightly less. |
| Home | ($25,150) | |||
| Car | ($4,000) | |||
| Car | ($4,000) | |||
| Personal Injury case | ($25,150) | |||
| Household goods | ($13,400) | |||
| Bank account or Tax refund | (Wildcard=$1.325 plus ½ of the unused Homestead) | |||
| Any Chapter 13 repayment must equal the amount due to the trustee in Chapter 7! | ||||
Indiana bankruptcy exemptions chart.
|
Exemption Description |
Individual |
Jointly Owned |
|
| 1 | Beneficiaries Life or Annuity Proceeds ICA §27-2-5-1(b) | ||
| 2 | Earnings ICA §24-4.5-5-105(2)(a) | 75% | 75% |
| 3 | Fraternal Benefit Society ICA §27-11-6-3 | ||
| 4 | Health Aids ICA §34-55-10-2(c)(4) | ||
| 5 | Homestead ICA §34-55-10-2(c)(1) 17,600.00 35,200.00 | $17,600.00 | $35,200.00 |
| 6 | Insurance – Life & Accident ICA §27-8-3-23(b) | ||
| 7 | Insurance – Life Proceeds ICA §27-1-12-14(e) | ||
| 8 | Insurance – Life Proceeds – Group ICA §27-1-12-29(b) | ||
| 9 | Intangible Personal Property ICA §34-55-10-2(c)(3) | $350.00 | $700.00 |
| 10 | Medical Care Savings Accounts ICA §34-55-10-2(c)(7) | ||
| 11 | Other Real Estate or Tangible Personal Prop. ICA §34-55-10-2(c)(2) | $9,350 | $18,700 |
| 12 | Partnership Property ICA §23-4-1-25(2)(c) | ||
| 13 | Pension – Firemen ICA §36-8-7-22 | ||
| 14 | Pension – Police ICA §36-8-6-14(c), §36-8-7.5-19 | ||
| 15 | Pension – Teachers CIA § 5-10.4-5-14(a) | ||
| 16 | Property of Housing Authority ICA §36-7-18-34 | ||
| 17 | Public Employees Retirement ICA § 5-10.3-8-9 | ||
| 18 | Qualified Tuition Program ICA § 34-55-10-2(c)(8)(C) | $5,000 | $10,000 |
| 19 | Real Estate (Tenant by Entirety) ICA §34-55-10-2(c)(5) | ||
| 20 | Refund under IRS code § 32 ICA § 34-55-10-2(c)(10) | ||
| 21 | Retirement Plan ICA §34-55-10-2(c)(6) | ||
| 22 | Uniforms, Arms, and Military Property ICA §10-2-6-3 | ||
| 23 | Widows Allowance ICA §34-55-7-9 | ||
| 24 | Workman Compensation ICA §22-3-2-17 |
Resources for Bankruptcy
Louisville Kentucky Bankruptcy Forms
Filing Chapter 7 & Chapter 13 Bankruptcy • Video
Kentucky Bankruptcy Exemptions Keep Your Property!
Annual Budgets and Tax Refunds in Bankruptcy • Video
How to Keep Tax Refunds in Chapter 7 or 13 Bankruptcy
If you are thinking about filing bankruptcy, don’t delay because timing is crucial. I am here to help you. So, contact my office right away to start the conversation. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.
