How the Indiana Homestead Exemption Can Protect You
When filing for bankruptcy in the state of Indiana, you are entitled to certain homestead exemptions that help protect your real and personal property. This valuable exemption is good for both Chapter 7 and Chapter 13 types of bankruptcy. The Indiana Homestead Exemption provides qualified residents with an added protection that may allow them to keep their home even though they are filing for bankruptcy. While the Homestead Exemption is offered to all residents who are filing for bankruptcy, it is important that you understand this exemption and how it can protect you and your property.
Indiana Homestead Exemption
The homestead exemption in Indiana provides protection for real estate property valued up to $17,600 for an individual and up to $34,200 for a married couples filing a joint bankruptcy claim. The exemption is based on the value of the equity in the home and not the true value of the property. The home equity can be determined by subtracting the full amount still owed on the mortgage from the actual value of the home. If this calculated amount falls below the exemption limits, then you are able to include this homestead exemption in your bankruptcy. Some states allow residents to choose whether to use the state exemptions rules or use the federal homestead exemption rules, but Indiana does not offer its residence such an option. Therefore, all residents of Indiana can only use the Indiana Homestead Exemption.
How to Apply
The Indiana Homestead Exemption is available to all residents who live and own property within the state of Indiana. This property includes all types of real estate, such as homes, mobile homes, townhouses, farms, and condominiums. This exemption is offered to all persons within the state who are filing a Chapter 7 or Chapter 13 bankruptcy. No special form or homestead declaration is required to be filed before you are able to use this exemption. You must, however, include this exemption as part of your bankruptcy when filing it with the courts. It is recommended that you seek legal counseling before filing for your bankruptcy to ensure that you have included the full value of your Indiana Homestead Exemption within the bankruptcy.
