April 4, 2017
If you file for bankruptcy in Indiana, the Indiana homestead exemption will allow you to protect $19,300 in home equity; $38,600 if you are married filing jointly. Read on to learn specifics about Indiana's homestead exemption.
For information about how the homestead exemption works in both Chapter 7 and Chapter 13 bankruptcy, go to The Homestead Exemption in Bankruptcy. For more information on exemptions, see Bankruptcy Exemptions.
Under Indiana law, a homeowner may exempt up to $19,300 of the value of a house or other property covered by the homestead exemption. Keep in mind that an individual filer who holds property as tenants by the entirety can protect all equity; however, this isn't true if both owners file for bankruptcy. Ind. Code § 34-55-10-2(c)(1); 11 USC § 522(b)(3)(B).
In Indiana, the homestead exemption is doubled to $38,600 for married couples filing a joint bankruptcy.
In Indiana, the homestead exemption applies to personal property (such as a mobile home) or real estate that constitutes your personal or family residence. As a result, a homestead in Indiana can include a home, condominium, trailer, or farm.
Some states allow bankruptcy filers to use federal bankruptcy exemptions instead of state exemptions. Indiana is not one of them. If you live in Indiana, you must use Indiana state exemptions.
In Indiana, the homestead declaration is automatic. Therefore, Indiana residents don't have to file a homestead declaration to claim the homestead exemption in bankruptcy.
Indiana’s homestead exemption is outlined in Indiana Code §§ 34-55-10-2. You can find Indiana statutes on the Indiana General Assembly website.
Indiana's Department of Financial Institutions adjusts state exemption amounts for inflation every six years. The next adjustment will be made in 2022.