In Indiana, you can apply for both Chapter 7 and Chapter 13 Bankruptcy as an individual consumer.
Bankruptcy in Indiana does not discharge some debts, including most back taxes, child support, alimony, most student loans, penalties or fines, and purchases greater than $550 made within 90 days of filing bankruptcy, or cash advances greater than $825 made within 70 days of filing bankruptcy.
To file for Chapter 7 bankruptcy in Indiana and have your debts erased, you must pass a means test. Under the test, if you make less than the median income for an Indiana family, you may file under Chapter 7. For singles, the median income in Indiana is $40,683 per year. $52,367 is the median income for a family of two, $59,438 for three persons, and $70,621 for four persons.
Before you file Chapter 7 bankruptcy in Indiana, you will need to undergo credit counseling approved by the state, as well as complete any unfiled income tax returns.
Once you meet the minimum requirements for filing personal bankruptcy in Indiana, your attorney will need to file a Statement of Financial Affairs with your local Indiana bankruptcy court. Your Statement of Financial Affairs will include a list of all your debts, both secured (such as mortgages or car loans) and unsecured (such as credit cards and medical bills). You will also need to include names and contact information for all your creditors and an itemized list of your personal property and assets. The filing fee for Chapter 7 bankruptcy in Indiana is $299.
Pursuant to Indiana law, if you do not have any equity in your house, you can keep it after filing bankruptcy, provided that you remain current on your mortgage payments. If you have less than $15,000 worth of equity in your home, you may claim a homestead exemption under Indiana bankruptcy laws. If you have more than $15,000 in equity, you may lose your home in your bankruptcy if you proceed with a Chapter 7 filing.
If you are making payments on a vehicle, you must reaffirm your loan within 45 days of filing Indiana bankruptcy. Provided that you remain current on the payments, you may keep your car.
Under Indiana bankruptcy law, you may also keep the following: Up to $8,000 worth of real property and personal property, your retirement plan, your health aids, unemployment benefits, worker’s compensation benefits, 75% of your earned wages that are still due to you, and pensions from a job as a public employee.
If you have extra income that would allow you to repay your debts, you may want to file Chapter 13 bankruptcy. When you file Chapter 13 bankruptcy in Indiana, you will establish a payment plan with the approval of the court and may be able to keep all of your personal property.