Business & Finance Bankruptcy

Chapter 13 Rules in Indiana

By Business & Finance Last updated Wednesday, April/24/2024

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Chapter 13 bankruptcy, known as the wage earner's plan, focuses on paying off your debt in three to five years, rather than discharging it through court. You must have stable, disposable income. Disposable income is income left after shelter, food, and utilities are paid. You cannot have secured debt exceeding $1,010,650. Secured debt is debt that can be used to pay off your creditors. You cannot have more than $336,900 in unsecured debt.

Filing Options

You must petition the court to accept your Chapter 13 bankruptcy plan. You can do this by lawyer, through a service, or "pro se", self-representation. Lawyers file and represent you in court, assuring that the process is complete. Filing services simply file what you give them to file. They do not look to make sure that your information is complete and that all debt is included. Representing yourself is not recommended as most lay people don't have intricate bankruptcy law knowledge. You may file during foreclosure in Indiana.

Indiana residents are entitled to exempt certain types of assets from bankruptcy proceedings. These are homestead, insurance, pensions, public benefits, tools of your trade, wild card and miscellaneous assets. Your real and personal property cannot exceed $7,500, health aids $10,000. Business partnership property is exempt. Retirement, public workers, and state teacher pensions are safe. Unemployment, workmen's compensation, crime-victim benefits, are exempt assets as well. You may also keep $4,000 of real or personal property as your "wild card" benefit.