Filing for bankruptcy is a difficult and complex process. You may be wondering what kind of personal items you can protect from creditors when you are filing for bankruptcy. Although Indiana provides an exemption for personal “tangible” items of up to $8,000, creditors may still be able to attach a lien to your property during the bankruptcy process. One way to protect your personal items from a lien is if they are a “household good.”
What is a household good in Bankruptcy?
Individuals can exempt household goods that are held primarily for personal, family, or household use by the individual or the individual’s dependent.
The Bankruptcy Code provides a list of items that are considered household goods. Clothing, furniture, appliances, linens, china, kitchenware, educational materials and equipment for minors, medical equipment and supplies, and “personal effects” of the individual are household goods. Children’s toys or wedding rings are examples of personal effects. Individuals can also exempt 1 radio, 1 television, 1 VCR, and 1 personal computer. So, an individual cannot exempt two personal computers.
The Bankruptcy Code also provides a list of items that are not household goods. Works of art, electronic entertainment equipment over $800, antiques over $800, jewelry over $800, motor vehicles, boats, or any other computer are not household goods. However, a work of art created by the individual could still be exempted. The previous exemptions also still apply. For example, an individual can exempt their wedding rings and their 1 television. An individual just cannot exempt additional jewelry over $800, or additional electronic entertainment equipment over $800 (like an additional TV).
If you have more questions on what kinds of items you can protect under the household good exemption, or are wondering if you can protect other kinds of property during Bankruptcy, contact McNeely Law today. Call us at 317-825-5110 to talk to an experienced Indiana Bankruptcy attorney who can help you navigate a Bankruptcy.
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.