Indiana Bankruptcy Laws
Filing Bankruptcy in Indiana
After you learn more about the bankruptcy process, you will be able to make an informed decision about which debt-relief option is best for you. During this difficult time, your best weapon is knowledge.
We provide an overview of the bankruptcy laws in Indiana, but an local attorney can answer specific questions you might have about how these laws affect your case.
To arrange a consultation with a local Indiana bankruptcy attorney, simply fill out the free case review on this page or call, toll free, 877-349-1309. For more information on Indiana’s bankruptcy laws, read on.
Indiana Bankruptcy Law
While meeting with your Indiana bankruptcy lawyer for the first time, he or she will likely explain the differences in Chapter 7 and Chapter 13 bankruptcy cases.
During your consultation, your lawyer may also ask you several questions, or have you fill out an intake sheet to provide detailed information about your assets, debts, and financial goals. The information you provide will help you and your bankruptcy lawyer decide if filing Chapter 7 or Chapter 13 bankruptcy is your best option.
Chapter 7 bankruptcy is often called “liquidation.” This is because the bankruptcy trustee in Chapter 7 bankruptcy cases has the option to liquidate, or sell, any non-exempt property that the debtor may own.
However, each state provides exemptions that protect certain property from being sold during bankruptcy. Most people who choose to file Chapter 7 bankruptcy do not own any non-exempt property, so there is no liquidation.
If you own few assets, and have lots of unsecured debt – like debt stemming from credit cards or payday loans – Chapter 7 bankruptcy may be an attractive option to consider because many of your unsecured debts could be discharged.
Homestead
- Up to $15,000, includes farm, condo, personal property or cooperative properties.
Wages
- Up to 75 percent of weekly disposable earnings.
Personal Property
- $300 for “intangible personal property.”
- 100 percent of the value of professional health aids.
- Up to $8,000 in other real estate and tangible personal property.
Chapter 13 bankruptcy is commonly known as reorganization because it allows debts to be reordered, prioritized and then a payment plan is set up and protected by a judge. Debtors who own more property may choose to file Chapter 13 bankruptcy because it could allow them to keep most or all of their assets.
Debtors who file Chapter 13 bankruptcy are required to create and propose a debt repayment plan to be approved by the bankruptcy court. This three-five year plan allows the debtor time to catch up on past due bills while stopping harassment and threats of foreclosure and repossession.
Speak With an Indiana Bankruptcy Lawyer Today
Bankruptcy laws in Indiana can be complex and confusing, causing many people who are considering filing bankruptcy in Indiana to feel overwhelmed.
In order to eliminate confusion about the laws, your Indiana bankruptcy lawyer may be able to explain the bankruptcy process to you in simple terms. When you speak with your bankruptcy lawyer, you may also have the opportunity to get answers to many of your questions about the bankruptcy process.
With Total Bankruptcy, it's easy to find an Indiana bankruptcy lawyer. Just fill out the free case review on this page or give us a call at 877-349-1309, and we’ll connect you with an local bankruptcy lawyer without delay.
Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.
Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.
Read the full text of the Indiana bankruptcy laws.