How to File Bankruptcy in Indiana
Bankruptcy can be a difficult process, especially in recent years as the United States has changed the laws for bankruptcy. Each state now has several files to present and forms to fill out before a petition can be granted. If the paperwork is missing a necessity or the court finds an individual has been purposely withholding information, the case will be thrown out.
Because of these complications, it is advised to consult an attorney. Do-it-yourself programs are available on the Internet, but some personal information can accidentally be excluded in these cases. Under Indiana law individuals have the opportunity to file as sole filers in single cases or as joint filers in cases of husbands and wives.
Chapter Thirteen Bankruptcy
Indiana allows two kinds of bankruptcy for personal purposes: Chapter Thirteen bankruptcy and Chapter Seven bankruptcy. Chapter Thirteen bankruptcy gives petitioners the opportunity to eliminate their debts by using their own income. After a petition is granted, a personal payment plan will be created according to the amount owed, the number of people living in the household, and the amount of monthly income. The payment plan will stipulate the amount that needs to be paid each month for a maximum of five years. After five years, or three years in some payment plans, all the outstanding debts will be paid in full.
Chapter Seven Bankruptcy
Chapter Seven Bankruptcy allows individuals to become debt-free by liquidating portions of their property. After a petition has been granted, a trustee will be assigned to the case. He or she will then organize the necessary property that is to be liquidated and pay the creditors with the acquired funds. Some kinds of property can be exempt from liquidation though each case is different. If an individual wishes to keep any of the non-exempt pieces of property, he or she is required to pay the valued amount to the trustee as if the item were to have been liquidated.
Indiana Bankruptcy Exemptions
Property to be sold under Chapter Seven bankruptcy can include exemptions for what property that is not allowed to be sold. Each state has its own set of exemptions rules, and Indiana places its exemptions into different asset categories. These include wild card, wages, tools of trade, public benefits, personal property, pensions, miscellaneous, insurance, and homestead. Each asset category holds numbers of exemptions.
Homestead assets include personal property and real property to seventy-five thousand dollars. Insurance assets include group life insurance policies, mutual life proceeds, and fraternal benefit society benefits. Pension assets can include pubic employees, firefighters, police officers, sheriffs, and state teachers. Personal property includes health aids and one hundred dollars of any kind of intangible personal property other than credited money.
Public benefits include unemployment compensation, crime victims’ compensation, and workers’ compensation. Tools of trade include tools, arms, and National Guard uniforms. Wages include a minimum of seventy-five percent of any wages earned but must be those that are yet to be paid. Wild card includes four thousand dollars of tangible personal property or real estate.