Indiana Bankruptcy Guide

Complete guide to filing bankruptcy in Indiana, including current median income requirements, Indiana's homestead exemption up to $22,500, bankruptcy court information for both Indiana districts, and how to find qualified bankruptcy attorneys throughout Indiana.

Indiana Median Income for Bankruptcy (2026)

To qualify for Chapter 7 bankruptcy in Indiana, your household income must be below these median income levels. If your income exceeds these amounts, you may still qualify through the means test or need to file Chapter 13 instead.

Household Size	Annual Median Income	Monthly Median Income
1 person	$54,635	$4,553
2 people	$70,697	$5,891
3 people	$79,461	$6,622
4 people	$95,314	$7,943
5 people	$104,314	$8,693
6 people	$113,314	$9,443

Note: For households larger than 4, add $9,000 per additional person. These figures are updated annually by the U.S. Trustee Program.

Calculate Your Indiana Eligibility

Indiana Bankruptcy Exemptions

Indiana does not allow bankruptcy filers to choose federal exemptions. All Indiana bankruptcy filers must use Indiana state exemptions.

Indiana Homestead Exemption

Up to $22,500.

Indiana's homestead exemption protects up to $22,500 of equity in your primary residence. This exemption applies to real property including houses, condominiums, mobile homes on owned land, and co-ops that serve as your principal residence.

The property must be your principal residence at the time of filing bankruptcy. The exemption covers the dwelling and the land upon which it sits, though the acreage covered is limited to a reasonably sized lot.

Indiana's homestead exemption is per household, not per person, so married couples filing jointly still only get $22,500 total protection (not $45,000). This is an important distinction compared to some other states.

Indiana Vehicle Exemption

None under Indiana law.

Indiana does not have a specific motor vehicle exemption. However, Indiana has a $10,500 personal property exemption (see below) that can be applied to vehicle equity or other personal property of your choice.

Most Indiana residents with auto loans have minimal equity after subtracting the loan balance and can keep their vehicles by continuing to make payments through a reaffirmation agreement in Chapter 7 or through the payment plan in Chapter 13.

Indiana State Exemptions

Indiana bankruptcy exemptions include:

• Homestead: $22,500 per household
• Vehicle: None (use personal property exemption)
• Personal Property: $10,500 of any tangible personal property (can be applied to vehicle, furniture, electronics, etc.)
• Intangible Personal Property: $450 (bank accounts, stocks, bonds)
• Tools of Trade: No separate exemption (use personal property exemption)
• Wildcard: The $10,500 personal property exemption functions as a wildcard
• Wages: Earned wages for services performed within 30 days before filing
• Education Savings: Indiana 529 education savings plan contributions

Other Protected Assets

• Retirement Accounts: Fully protected including 401(k), IRA, pension plans, and government retirement benefits under federal law
• Public Benefits: Social Security, unemployment, workers' compensation, veteran's benefits, disability benefits, public assistance
• Life Insurance: Group life insurance policy; life insurance proceeds if beneficiary is spouse or dependent
• Health Aids: Health aids prescribed by physician
• Spendthrift Trusts: Property held in spendthrift trusts
• Crime Victim Compensation: Crime victim's compensation

Filing Bankruptcy in Indiana

Chapter 7 Bankruptcy in Indiana

Chapter 7 bankruptcy is commonly filed throughout Indiana. The process typically takes 3-4 months from filing to discharge and eliminates most unsecured debts including credit cards, medical bills, personal loans, and past-due utility bills.

To qualify for Chapter 7 in Indiana, you must pass the means test by having income below the Indiana median or by showing that after allowable expense deductions, you lack sufficient disposable income to fund a Chapter 13 repayment plan. You must also complete credit counseling from an approved agency within 180 days before filing.

Indiana's $22,500 homestead exemption and $10,500 personal property exemption (which can be used as a wildcard) provide reasonable protection for most assets. Many Indiana residents can keep their homes, vehicles, and personal property while obtaining a fresh financial start through Chapter 7.

Learn more about Chapter 7 bankruptcy →

Chapter 13 Bankruptcy in Indiana

Chapter 13 bankruptcy allows Indiana residents to keep property while repaying some or all debts through a court-approved 3-5 year payment plan. This option is particularly beneficial if you're behind on mortgage or car payments and want to catch up while stopping foreclosure or repossession.

Chapter 13 is especially useful in Indiana if your income is too high to qualify for Chapter 7, if you have non-exempt assets you want to protect (particularly if you have more than $22,500 in home equity or significant personal property exceeding exemption limits), or if you have priority debts like recent taxes or past-due child support. Your monthly payment is based on your disposable income after allowable living expenses.

Learn more about Chapter 13 bankruptcy →

Bankruptcy Courts in Indiana

Indiana is divided into two federal bankruptcy court districts:

Northern District of Indiana

Main Courthouses: South Bend, Fort Wayne, Hammond

Covers northern Indiana including South Bend, Fort Wayne, Gary, Hammond, Elkhart, Mishawaka, and the northern portion of the state. This district serves the industrial northern region including the areas adjacent to Chicago and Michigan.

Court divisions: South Bend Division (north-central Indiana), Fort Wayne Division (northeast Indiana), and Hammond Division (northwest Indiana near Chicago).

Southern District of Indiana

Main Courthouses: Indianapolis, Evansville, Terre Haute, New Albany

Covers southern Indiana including Indianapolis, Evansville, Bloomington, Terre Haute, New Albany (Louisville metro), and the southern portion of the state. This is the larger district by population, with Indianapolis as the state capital and largest city.

Court divisions: Indianapolis Division (central Indiana), Evansville Division (southwest Indiana), Terre Haute Division (west-central Indiana), and New Albany Division (southern Indiana near Louisville, Kentucky).

You must file in the district where you have lived for the greater part of the 180 days before filing. Visit the U.S. Courts website for specific court locations, filing procedures, and local rules for each Indiana district.

Indiana Residency Requirements

To use Indiana bankruptcy exemptions, you must have been domiciled (legally residing) in Indiana for at least 730 days (2 years) before filing. If you've lived in Indiana for less than 2 years, you must use the exemptions from the state where you lived for the 180 days immediately before the 2-year period.

Indiana does not allow the choice of federal exemptions, so once you meet the residency requirement, you must use Indiana state exemptions.

Find an Indiana Bankruptcy Attorney

Most Indiana bankruptcy attorneys offer free initial consultations. Given the complexity of bankruptcy law and Indiana's specific exemption rules, consulting with an experienced Indiana bankruptcy attorney is highly recommended.

What an Indiana Bankruptcy Attorney Can Do

• Determine which bankruptcy chapter is right for your financial situation
• Maximize Indiana exemptions to protect your assets
• Strategically use the $10,500 personal property exemption as a wildcard
• Calculate whether you qualify for Chapter 7 using the Indiana means test
• Navigate Indiana-specific bankruptcy procedures and local court rules
• Complete and file all required bankruptcy paperwork correctly
• Represent you at the 341 meeting of creditors
• Handle any objections from creditors or the bankruptcy trustee
• Guide you through the entire process from filing to discharge

Cost of Filing Bankruptcy in Indiana

Chapter 7 bankruptcy attorney fees in Indiana vary by location:

• Indianapolis metro area: $1,100 to $1,600 plus $338 filing fee
• Fort Wayne area: $1,000 to $1,500 plus $338 filing fee
• Evansville, South Bend: $950 to $1,450 plus $338 filing fee
• Gary, Hammond, Northwest Indiana: $1,000 to $1,500 plus $338 filing fee
• Other Indiana cities and rural areas: $800 to $1,300 plus $338 filing fee

Chapter 13 attorney fees typically range from $2,800 to $4,000 plus a $313 filing fee. In Chapter 13, attorney fees are usually paid through your repayment plan rather than upfront.

Many Indiana attorneys offer payment plans for Chapter 7 to make bankruptcy more accessible.

Indiana-Specific Bankruptcy FAQs

Can I keep my house in Indiana bankruptcy?

It depends on your equity. Indiana's $22,500 homestead exemption protects most homes with mortgages or modest equity. If you have more than $22,500 in equity, you may need to file Chapter 13 to keep your home, or the trustee may require you to pay the non-exempt equity value to creditors. Many Indiana homeowners have little equity due to mortgages and can keep their homes in Chapter 7.

Can I keep my car in Indiana bankruptcy?

Yes, in most cases. While Indiana has no specific vehicle exemption, you can use the $10,500 personal property exemption to protect vehicle equity (and any remaining amount for other personal property). If you owe more than your car is worth or have minimal equity after applying this exemption, you can typically keep it by continuing to make payments through a reaffirmation agreement.

How does Indiana's personal property exemption work?

Indiana allows you to exempt $10,500 of any tangible personal property. This functions as a wildcard exemption that can be applied to any combination of personal property including vehicles, furniture, electronics, jewelry, tools, household goods, or anything else tangible. You choose how to allocate this $10,500 among your personal property to maximize protection. An Indiana bankruptcy attorney can help you strategize this allocation.

Why is Indiana's homestead exemption per household instead of per person?

Indiana's homestead exemption of $22,500 applies to the household, not per individual filer. This means married couples filing jointly still only get $22,500 total protection (not $45,000). This is different from states like Texas or Florida where exemptions may apply per person or have special rules for married couples. Indiana's approach limits protection for jointly-owned homes.

What if I work in Illinois but live in Indiana?

If you live in Indiana, you file bankruptcy in Indiana regardless of where you work. Many northwest Indiana residents (Gary, Hammond, Merrillville area) work in Illinois but file bankruptcy in Indiana's Northern District. Your work location doesn't affect which state's exemptions you use—only your residence matters. You must have lived in Indiana for 730 days to use Indiana exemptions.

Can I protect tools for my business in Indiana bankruptcy?

Indiana doesn't have a separate tools of trade exemption. However, you can use your $10,500 personal property exemption to protect business tools and equipment. If your tools are worth more than $10,500, you may need Chapter 13 to keep them, or you'll need to pay the trustee for the non-exempt value. Indiana bankruptcy attorneys can help business owners plan to protect essential tools.

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