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What are bankruptcy exemptions in Indiana?

Federal & State Law Editorial TeamLast reviewed: 2026-05-02

Indiana provides moderate state exemptions with periodic CPI adjustments.

1. Opt-Out State — Ind. Code § 34-55-10-1

Indiana opted out. Debtors must use Indiana exemptions.

2. Homestead — Ind. Code § 34-55-10-2(c)(1)

  • $22,750 for individuals (effective March 1, 2024; adjusted every 6 years).
  • $45,500 for joint filers if both names on title.

    • Among the moderate-tier exemptions; reflects 2024 CPI adjustment from $19,300.

    3. Wildcard — Ind. Code § 34-55-10-2(c)(3)

  • $11,250 in tangible personal property (excluding intangibles like cash and bank accounts).
  • Joint filers may stack to $22,500.

    • 4. Intangible Personal Property — Ind. Code § 34-55-10-2(c)(2)

  • $450 in intangible property other than wages (for cash, bank accounts, securities). Surprisingly small.

    • 5. Health Aids — Ind. Code § 34-55-10-2(c)(4)

    Fully exempt.

    6. Motor Vehicle

  • No specific vehicle exemption — must use the $11,250 wildcard for vehicle equity.

    • 7. Wages — Ind. Code § 24-4.5-5-105

    75% of disposable earnings OR 30x federal minimum wage exempt (matches CCPA).

    8. Retirement Accounts — Ind. Code § 34-55-10-2(c)(6)

  • ERISA plans, IRAs, Roth IRAs: fully exempt.
  • Contributions within 1 year of filing: not exempt — important planning consideration.

    • 9. Insurance

  • Life insurance proceeds — Ind. Code § 27-1-12-14: exempt up to $1,000 cash value (low cap).
  • Group life insurance, fraternal benefit society, mutual life: more generous.

    • 10. Public Benefits — Ind. Code § 34-55-10-2

    Social Security, unemployment, workers' comp, veterans', public assistance — fully exempt.

    11. Personal Injury Proceeds — Ind. Code § 34-55-10-2(c)(11)

  • $20,000 for personal bodily injury (since 2024 amendment).

    • 12. Education Savings — Ind. Code § 34-55-10-2(c)(9)

    529 plans contributed more than 2 years before filing — exempt.

    13. Tenancy by the Entirety

    Indiana recognizes — joint marital property exempt from individual creditors.

    14. Domicile Requirement

    730-day rule under 11 U.S.C. § 522(b)(3).

    15. CPI Adjustment

    Adjusted every 6 years under Ind. Code § 34-55-10-2.5 (most recent: 2024).

    16. Strategy

    With no specific vehicle exemption, debtors typically allocate the $11,250 wildcard to vehicle equity, then file a Chapter 7 if remaining nonexempt assets are minimal.

    This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You contributed to a retirement account within 1 year of filing — those contributions may not be exempt
    • Your vehicle equity exceeds the $11,250 wildcard limit
    • You need to strategically allocate the wildcard given no specific vehicle exemption
    Related Statutes & Laws
    • Ind. Code § 34-55-10-2
    • Ind. Code § 34-55-10-2.5
    • Ind. Code § 24-4.5-5-105
    • Ind. Code § 27-1-12-14

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.