Declaring bankruptcy in Indiana can give you a fresh start and wipe out debt http://research.lawyers.com/Indiana/Bankruptcy-in-Indiana.html. If you've reached the point where your bills are overwhelming you may be considering declaring bankruptcy. This page will show you how to file for Indiana bankruptcy.

Indiana bankruptcy is managed by the federal court system. http://www.bankruptcyindiana.com/faq_details.asp?fid=3 You'll file in the U.S. District Court that is responsible for your county. There are some specific aspects of bankruptcy that will be affected by Indiana state law, however. These include the means test for Chapter 7 bankruptcy, and the specific assets that are exempt from liquidation http://research.lawyers.com/Indiana/Bankruptcy-in-Indiana.html.

If you are unable to pay your debts, you may be eligible for Chapter 7 bankruptcy protection,also know as "liquidation," in which your assets are liquidated to pay off your creditors and the unpaid debts are forgiven http://research.lawyers.com/Indiana/Bankruptcy-in-Indiana.html. This determination is made by looking at your income. If you have enough income to pay your debts, but need the payments lowered, you would file for Chapter 13 bankruptcy, in which the repayment schedule is adjusted to give you more time to pay http://research.lawyers.com/Indiana/Bankruptcy-in-Indiana.html?page=2. Both processes have specific legal criteria, and both are managed by the court.

Any person wishing to file a Chapter 7 bankruptcy in Indiana must meet specified income requirements. As of April 1, 2010, in order to meet the income test for Chapter 7 bankruptcy eligibility, you must have a family income of less than $40,683 if you are single, $52,367 for a two person household, $59,438 if there are three people in your family, and $70,621 if there are four. http://www.clearbankruptcy.com/chapter-7-bankruptcy/median-income.aspx (For households with more than four people, $7500 per person should be added. http://www.clearbankruptcy.com/chapter-7-bankruptcy/median-income.aspx

Not all assets are seized as part of a Chapter 7 bankruptcy in Indiana. You can usually keep the following:

1. Your house, as long as you have less than $7,500 in equity, and the total of the house and other real, personal, and intangible property is less than $10,000.
2. Prescribed health aids
3. Retirement plans, pensions, fraternal society benefits, group ife insurance policy, and medical care savings accounts
4. Crime victims' compensation, unemployment compensation, workers' compensation
5. National guard uniforms, arms and equipment
6. Life insurance proceeds if the beneficiary is your spouse or dependent, if it is a mutual life or accident policy ,or if a clause in the policy prohibits the beneficiary from using proceeds to pay creditors
7. Property of a business partnership
8. 75% of your earned but unpaid wages, subject to increase at the discretion of the judge

http://research.lawyers.com/Indiana/Bankruptcy-in-Indiana.html?page=2

The content in this page is not a substitute for professional financial advice. Please contact a finance professional before using the information presented here.