On March 1, 2022, several changes will become effective for some bankruptcy exemptions available in Indiana. The impacted provisions are the personal or family residence, other real estate or tangible property, and intangible personal property exemptions.
Procedural Background of the Exemption Changes
Every 6 years the Indiana Department of Financial Institutions (IDFI) adjusts the allowable exemption amounts to keep pace with inflation. The IDFI typically changes based on the Consumer Price Index (CPI) for All Urban Consumers, as published by the United States Department of Labor.
The March 1 Changes
The following increases will be effective March 1:
In the case of married debtors filing jointly, these exemptions may be doubled. Thus, for joint filers, the new exemptions amounts would equal:
Consensus on the Updated Exemptions
These changes are welcomed by many practitioners who represent debtors in bankruptcy. Indiana has relatively limited exemptions compared to other states and is one of 34 states that does not allow use of the federal bankruptcy exemptions. With inflation surging post-pandemic to 5.39% (according to the trailing 12-month CPI), these exemption adjustments will allow debtors some additional breathing room in the bankruptcy process.
If you are considering bankruptcy, contact the bankruptcy attorneys at McNeelyLaw to discuss how you can get a fresh start.
This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.