Indiana Bankruptcy Exemptions Increased

Posted By : admin
Category : Bankruptcy
07 - Mar - 2016

When you are a bankruptcy attorney, an increase in the bankruptcy exemptions is big news.  In Indiana, bankruptcy exemptions are increased statutorily every six (6) years.  That means the the olympics are held more often than bankruptcy exemptions increase.  So, let me explain what the heck a bankruptcy exemption is, why this is a big deal and what the new exemptions are as of March 1, 2016.

A bankruptcy exemption is the amount of “stuff” a person is allowed to keep when they file a bankruptcy pursuant to Indiana exemptions.  There are many different categories of exemptions, but the most often used are the following:

  1.  Intangible Property Exemption:  This exemption is for cash, funds in the bank, funds under the mattress or buried in the back yard and the value of any stocks as of the date of the filing of the bankruptcy petition;
  2. Tangible Property Exemption:  This exemption is for the value of personal property and furnishings.  Examples include equity in vehicles, clothing, jewelry, lawn mowers, and home furnishings;
  3. Residential Real Estate:  This exemption allows Hoosiers to exempt a portion of the equity that they have built in the residence in which they live.

The increase in exemptions is a big deal because it doesn’t happen often.  And, even though the exemptions are only increasing by a small amount, any increase means that much more property that my clients can keep in the event that they file bankruptcy.  In addition, for those who are being pursued by creditors, it means that much more that a creditor can’t take even if they opt not to file for bankruptcy protection.

So, what are the new bankruptcy exemptions as of March 1, 2016?

  1.  Intangible Personal Property.  This exemption has increased from $350.00 to $400.00 (Double the Exemption for Married Filers Filing Jointly);
  2. Tangible Personal Property.  This exemption has increased from $9,350.00 to $10,250.00 (Double the Exemption for Married Filers Filing Jointly);
  3. Residential Real Estate:  This exemption has increased from $17,600.00 to $19,300.00.  (Double the Exemption for Married Filers Filing Jointly).

If you live in Indianapolis, Indiana or the surrounding areas in Central Indiana, and are considering bankruptcy please contact Halcomb Singler,  LLP at (317) 575-8222 or click here.  Our office is conveniently located on Main Street in Carmel.  No need to worry about the one-way streets or paying for parking in downtown Indianapolis.  There is no fee for an initial bankruptcy consultation and our attorney will give you the information for you to make a determination regarding whether or not bankruptcy is a good option for you.

**Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.