Bankruptcy in Indiana
Bankruptcy isn’t about failure—it’s about regaining control. Filing for bankruptcy can stop collection efforts, protect your assets, and give you a legal path to reorganize or discharge your debt.
Indiana offers state-specific exemptions that can help you protect key assets. From your home and vehicle to retirement accounts and personal property, knowing how Indiana’s laws apply can make a major difference.
You don’t have to navigate it alone. A qualified Indiana bankruptcy attorney can help you understand your options, file the right chapter, and guide you through every step.
Types of Bankruptcy in Indiana
Bankruptcy is a legal process designed to help individuals and businesses in IN find relief when debts become unmanageable. It can eliminate or restructure qualifying debts, offering a clear path toward financial recovery. To be eligible, you must show that a legitimate hardship, such as job loss, illness, or reduced income, prevents you from keeping up with your obligations.
If you’re overwhelmed and unsure how to move forward, bankruptcy offers several structured options. Chapter 7 may allow you to discharge unsecured debts quickly through liquidation, while Chapter 13 creates a court-supervised repayment plan. Chapter 11 is often reserved for businesses or individuals with high-value assets or more complex financial issues.
Choosing the right chapter depends on your income and what you’re trying to protect. An experienced bankruptcy attorney can walk you through each option and help you file with confidence.
In Indiana, bankruptcy cases are handled by the United States Bankruptcy Courts for the Northern and Southern Districts of Indiana. These courts serve residents across the state, with locations in cities such as South Bend, Fort Wayne, Hammond, Indianapolis, Evansville, and New Albany.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy can be a practical solution for individuals in Indiana who have little or no disposable income and need a clean financial break. It offers the chance to discharge many unsecured debts, such as credit card balances or medical bills, and start fresh.
But before filing, you’ll need to take a close look at your income, assets, and the debts you hope to resolve. A bankruptcy attorney can help you determine if Chapter 7 is a good fit and explain what you may be required to give up in the process.
Most people who qualify for Chapter 7 have experienced a major financial setback that makes repayment impossible. While the process can eliminate many debts, you may be required to surrender certain assets that aren’t covered by Indiana’s exemption laws.
Once you file, an automatic stay temporarily stops foreclosures, wage garnishments, and other collection actions. That protection has limits, though—debts like child support, criminal restitution, and certain court-ordered obligations are not discharged and must still be paid. Understanding what Chapter 7 can and cannot do is essential before moving forward.
Chapter 7 isn’t the right fit for everyone, especially if you have a steady income, own valuable property, or are trying to catch up on secured debts like a mortgage or car loan. In these situations, Chapter 13 may be a better option because it allows you to keep your assets and repay what you owe through a court-approved plan.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a more advanced option, typically used by businesses or individuals with substantial assets or complicated financial obligations. It allows you to restructure your debts through a court-approved repayment plan—usually lasting four to eighteen months—without having to liquidate your property.
Instead of selling assets, you work directly with creditors to adjust the terms of what you owe, making payments more manageable over time. This chapter is ideal for those who need flexibility and want to stay operational while resolving their financial situation.
Filing for Chapter 11 bankruptcy in Indiana requires extensive documentation that outlines your complete financial position. This chapter is often used by businesses or individuals with complex assets, and the court expects a clear, organized record of your finances from the start.
To file, you’ll need to submit the following:
- Voluntary Petition (Official Form 101)
- Schedules A/B through J – listing all property, liabilities, income, and expenses
- Statement of Financial Affairs (Official Form 107)
- Creditor Matrix – a complete list of all creditors and their addresses
- Summary of Assets and Liabilities
- Disclosure of Attorney Compensation
- Recent financial statements – including profit/loss reports and cash flow statements (for businesses)
- Proposed Reorganization Plan and Disclosure Statement – usually filed after the initial petition
Chapter 13 Bankruptcy
Chapter 13 bankruptcy—often called a wage earner’s plan—allows individuals in IN to reorganize their debt without giving up essential property. After filing, the court appoints a trustee to review your income, expenses, assets, and total debt. Based on that review, you’ll propose a repayment plan that typically lasts three to five years.
The structure of that plan depends on your income stability and what property you’re aiming to keep. If you stay current and complete the plan, you may be able to discharge some or all remaining eligible debts at the end.
The filing process is more hands-on. After submitting your petition, you’ll work with a court-appointed trustee who reviews your finances and ensures you’re following the repayment plan. You’ll make monthly payments directly to the trustee, who then distributes funds to your creditors.
The Bankruptcy Process in Indiana
There’s rarely a perfect time to file for bankruptcy, but if your debts are more than you can realistically repay within five years, it may be time to consider your legal options. Bankruptcy can pause collections, protect your property, and offer a structured way to reset your financial situation with the court’s oversight.
To start the process in Indiana , you’ll need to compile a full picture of your finances. That includes your current income, total debts, monthly expenses, and the value of your assets. The court uses this information to evaluate your eligibility and determine how your case should proceed. Missing or incomplete details can delay—or even derail—your petition. Accuracy is key from day one.
In Indiana, the bankruptcy process follows federal rules, but the state requires you to use its exemption system to determine what property you can protect. These exemptions are critical—they help shield your home, vehicle, income, and other essentials from being taken to satisfy debts in a Chapter 7 case or from being included in a Chapter 13 repayment plan.
Key Indiana exemptions include:
- Homestead exemption: Up to $22,750 in equity in your primary residence (doubled for married couples filing jointly)
- Vehicle exemption: Up to $4,000 in equity in one motor vehicle
- Personal property: Up to $10,250 total for household goods, furnishings, and other items
- Wildcard exemption: Up to $12,100 in any other property (unused personal property or homestead exemption can increase this)
- Wages: 75% of earned but unpaid wages are protected
- Public benefits: Fully exempt, including unemployment, Social Security, and veterans’ benefits
- Retirement accounts: Most tax-deferred retirement savings and pensions are fully protected
Work With an Experienced Indiana Lawyer
This isn’t a decision you have to make alone. A qualified Indiana bankruptcy attorney can help you evaluate your options, file the correct chapter, and navigate every step with confidence. If you’re ready to take control of your finances and start fresh, request a referral today and get the support you need to begin your next chapter.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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