Indiana Bankruptcy Laws

The state of Indiana is divided into two bankruptcy districts: Indiana Northern Bankruptcy Court and Indiana Southern Bankruptcy Court. These courts serve the entire state of Indiana.

Indiana Bankruptcy Exemptions
Exempt property is property that you are allowed to keep in a chapter 7 bankruptcy. State law determines what property is exempt. According to Lawyers.com, under Indiana bankruptcy laws, you can keep:

• Real property (other than your residence) and personal property, up to $4,000 in value; intangible property, up to $100 in value; but your residence, other real and personal property and intangible property may not exceed $10,000 in total value.
• Professionally prescribed health aids.
• Your interest in a retirement plan.
• Public employees' pensions.
• Money that's in a medical care savings account.
• Crime victims' compensation, unemployment compensation, workers' compensation.
• National guard uniforms, arms and equipment.
• Fraternal benefit society benefits.
• Payment under a life insurance contract if the beneficiary is your spouse or dependent.
• Life insurance proceeds if a clause in the policy prohibits the beneficiary from using proceeds to pay creditors.
• Group life insurance policy.
• Proceeds from a mutual life or accident policy.
• Property of a business partnership.
• 75% of your earned but unpaid wages; the bankruptcy judge may authorize more for low-income debtors.

NOTE: These are the major bankruptcy exemptions. Check with your bankruptcy lawyer for a full exemptions list.

New Bankruptcy Law Changes - Outlines major changes you should know about in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws.

This is important! The new bankruptcy law requires all debtors to fulfill two education requirements: a credit counseling course prior to filing and a financial management course before obtaining a discharge. Failure to complete either of these courses and file the appropriate certificates with the court will prevent a successful bankruptcy. The Chapter 13 Trustee will offer the required courses to Chapter 13 debtors, but Chapter 7 debtors are required to take the courses on their own.

Find a U.S. Trustee Approved Pre-Bankruptcy Counseling Provider and Post-Filing Debtor Education Provider.