The Indiana Homestead Exemption

The Indiana bankruptcy homestead exemption allows you to protect $19,300 in home equity; $38,600 if you are married filing jointly.

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.

The Indiana Homestead Exemption Amount

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).

Doubling for Married Couples

In Indiana, the homestead exemption is doubled to $38,600 for married couples filing a joint bankruptcy.

The Scope of Indiana’s Homestead Exemption

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.

You Can't Use the Federal Bankruptcy Exemptions in Indiana

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.

Homestead Declarations

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.

Finding Indiana’s Homestead Exemption Statute

Indiana’s homestead exemption is outlined in Indiana Code §§ 34-55-10-2. You can find Indiana statutes on the Indiana General Assembly website.

Periodic Adjustments of Indiana Exemption Amounts

Indiana's Department of Financial Institutions adjusts state exemption amounts for inflation every six years. The next adjustment will be made in 2022.

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