If you are considering the declaration of bankruptcy in Indiana, then it is important that you understand the different exemptions available to you when you file under Chapter 7. Chapter 13 doesn’t have these exemptions as it doesn’t wipe away all of your past debts; instead, it is a method of working with your creditors to pay off your debts. Chapter 7 on the other hand, will wipe away most of your past debts. Certain property will be subject to claim by the creditors though, unless it is declared as an exemption. When you declare bankruptcy, you want to declare as much of your property as exempt as possible. Therefore, read over the following exemptions in Indiana.
There is no question that your main worry when declaring bankruptcy in Indiana will be the possibility of losing your home. The good news is that as long as you have $7,500 equity in your home you have nothing to worry about. Of course, you will still have to continue making your payments. If you are a tenant by the entirety, then your property may be exempt that was only incurred by one spouse. Also, the homestead and personal property may not be over $10,000 unless there are medical aids involved.
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The exemptions for wages and pensions are similar when declaring bankruptcy in Indiana. When it comes to wages, you can rest assured that 75 per cent of all wages that you earned, but have not yet received, are an exemption. If you earn particularly low wages, then the judge may raise your exemption rate. Various payments from pensions are exempt from your creditors including pensions for firefighters, police officers, public employees, state teachers, sheriffs, as well as public and private retirement benefits.
There are many other exemptions available to you when you file for Chapter 7 bankruptcy in Indiana. As a matter of fact, there are too many to be listed here, so be sure to meet with your attorney to make sure you have declared as many exemptions as possible. Here are some other exemptions in Indiana that are worth mentioning: insurance, property of business partnerships, health aids, public benefits, tools of your trade, and a wild card that constitutes $4,000 worth of personal property or real estate. Take note that the insurance exemptions include: life insurance, fraternal society benefits, as well as mutual life or accident proceeds.