INDIANA BANKRUPTCY LAW

Indiana Bankruptcy: Attorneys, Statistics, Exemptions and Courts.

Indiana Bankruptcy Statistics: In 2009, in Indiana, 7,704 bankruptcies were filed. Business bankruptcies accounted for only 4.95% or 381 of all the filings, the other 7,323 were personal bankruptcies.

Indiana State Bankruptcy Exemptions

Homestead

The home (“homestead”) is exempt for a value of up to $15,000.

Indiana recognizes a form of property ownership called a “tenancy by the entirety,” which is available only to married couples. If a married couple owns their home as a tenancy by the entirety, than the entire home may be exempt in bankruptcy if the debt is incurred by only one spouse.

Personal Property

The following personal properties are entirely exempt when filing bankruptcy in Indiana:

1. Trusts with a valid clause prohibiting payment to creditors of the beneficiary
2. Health aids prescribed to the debtor or debtor’s dependents
3. Medical care savings account deposits
4. Intangible personal property is wholly exempt, aside from money owed to the debtor
5. Qualifying educational savings account
6. Tax refunds received under either federal or Indiana earned income tax credit provisions

Insurance

The following insurance benefits are exempt when filing bankruptcy in Indiana:

1. Life insurance is entirely exempt in the following circumstances
   • Policy, proceeds, cash value, avails are exempt when the beneficiary is a spouse or dependent of the insured.
   • Proceeds are exempt when the policy contains a valid clause prohibiting the payment of proceeds to beneficiaries’ creditors.
2. Employer life insurance policy
3. Group life insurance policy
4. Accident and mutual life insurance proceeds
5. Benefits from fraternal benefits society

Pension

In an Indiana Bankruptcy, federal pension exemptions apply.

The following individuals’ pensions are exempt when filing for bankruptcy in Indiana:

1. Public employees
2. State teachers
3. Police officers
4. Firefighters
5. Sheriff

Public and private retirement benefits and contributions are entirely exempt.

Public Benefits

The following public benefits are exempt when filing for bankruptcy in Indiana:

1. Unemployment compensation
2. Worker’s compensation
3. Crime victims benefits – unless the debt is for injuries incurred in the crime

Miscellaneous

If the debtor is a partner in a business, the property owned by the business is exempt when the debtor files bankruptcy in Indiana.

Tools of the Trade

Members of the National Guard may exempt arms, equipment and uniforms.

Wages

Unpaid wages are exempt at 75% of the disposable income or 30 times the federal minimum wage, whichever is greater. A judge has the discretion to allow a large exemption for a low income debtor.

Wildcard

Real or tangible personal property may be exempt for an additional $8,000.

Federal Bankruptcy Exemptions: No

Indiana Bankruptcy Courts:

United States Bankruptcy Court in the Northern District of Indiana has jurisdiction in the following counties: Adams, Allen, Benton, Blackford, Carroll, Cass, De Kalb, Elkhart, Fulton, Grant, Huntington, Jasper, Jay, Kosciusko, La Porte, Lagrange, Lake, Marshall, Miami, Newton, Nobel, Porter, Pulaski, Starke, Steuben, St. Joseph, Tippecanoe, Wabash, Warren, Wells, White, Whitley.

United States Bankruptcy Court in the Southern District of Indiana has jurisdiction in the following counties: Bartholomew, Boone, Brown, Clark, Clay, Clinton, Crawford, Davies, Dearborn, Decatur, Delaware, Dubois, Fayette, Floyd, Fountain, Franklin, Green, Gibson, Hamilton, Hancock, Harrison, Howard, Jackson, Jefferson, Jennings, Knox, Lawrence, Madison, Marion, Martin, Monroe, Montgomery, Morgan, Ohio, Orange, Owen, Parke, Perry, Pike, Posey, Putnam, Randolph, Ripley, Rush, Scott, Shelby, Spencer, Sullivan, Switzerland, Tipton, Union, Vanderburgh, Vermillion, Vigo, Warrick, Washington, Wayne.