What Property You Can Keep After Bankruptcy?
At Schmidt Whitten & Whitten, we hear a lot of different questions and concerns every day. Even though most people have heard the term bankruptcy before, we realize that a lot of people don’t necessarily know and understand all the intricate details of this complex subject. One of the common questions we deal with on a regular basis is: “what property can I keep after I file for bankruptcy?” This is obviously a very important question; so let’s take a look at the answers.
What Happens to My Property in Bankruptcy
It’s important to note that according to Indiana law anyone filing for bankruptcy must follow the state’s bankruptcy exemptions laws, as Indiana has opted out of the federal bankruptcy exemptions. There are several items in Indiana that commonly fall under the state’s exemption laws, including, but not limited to:
- Residential or Homestead Property – through this exemption you can protect a certain amount of the equity you already have in your home or residence. Up to $17,600 can be exempt in a residence for a single homeowner or $35,200 can be exempt for married homeowners.
- Personal Property – Indiana residents are allowed to keep nonresidential tangible property valued at up to $9,350 per person. This would allow you to hold onto the equity you have in your vehicle, furniture, clothes, jewelry, etc. when you choose Chapter 7 Bankruptcy.
- Intangible Property –Indiana law allows you to exempt and keep up to $350 of intangible property. This includes cash on hand, money in the bank at the time of filing, security deposits, stocks, bonds, etc. You can also exempt any health aids, earned income tax credit, your interest in a qualified retirement plan or any funds in a medical savings account.
Don’t Lose Your Property in Bankruptcy
If you are thinking about filing for bankruptcy, or you already know that you need to file, then please contact us at the Schmidt Whitten & Whitten as soon as you can. There are so many important aspects that you need to be aware of regarding bankruptcy, including what property you get to keep when you file. Don’t leave your valuable possessions to chance. Contact us today and learn how we can help you save your property and get you through the bankruptcy process as financially sound as possible. Just click here to set up an initial consultation with us online, or call us today at 219-756-0555.
Schedule A Free Consultation
At Schmidt Whitten & Whitten, we offer a free consultation during which we will examine the facts of your case and advise you on how best to proceed