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
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
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.