Bankruptcy exemptions in Indiana: what you can keep
The Indiana exemption list, the homestead rule, which state's law applies and how to claim exemptions.
Checked against official sources: October 25, 2026.
Short answer
In Indiana you use state exemptions only (exemptions are the property the law lets you keep). Your home (homestead): $22,750 in the home (real estate or personal property such as a mobile home) that you or a dependent live in.
- Exemption system
- State exemptions only
- Car or other vehicle
- No separate vehicle exemption. A car can be protected under the $12,100 exemption for other real estate or tangible personal property.
- Amounts
- March 1, 2022; next adjustment no later than March 1, 2028.
Exemptions in Indiana, item by item
Exemptions are the property the law lets you keep. You use the Indiana list. The federal list is not available in Indiana.
Law: Ind. Code 34-55-10-1
| What | Indiana exemption |
|---|---|
Home (homestead) | $22,750 in the home (real estate or personal property such as a mobile home) that you or a dependent live in Each spouse can claim this exemption for a home they own together as tenants by the entirety. Separately, real estate held as tenants by the entirety is fully exempt from debts that only one spouse owes. The amount is updated by the Indiana Department of Financial Institutions every 6 years; the current amount applies from March 1, 2022. Law: Ind. Code 34-55-10-2(c)(5); Ind. Code 34-55-10-2(c)(1); Ind. Code 750 IAC 1-1-1(c) |
Car or other vehicle | No separate vehicle exemption. A car can be protected under the $12,100 exemption for other real estate or tangible personal property. Law: Ind. Code 34-55-10-2(c)(2); Ind. Code 750 IAC 1-1-1(c) |
Household goods and clothing | $12,100 total for other real estate or tangible personal property (household goods, furniture, clothing, a vehicle, tools and similar items). Separate $450 for intangible property such as cash and bank accounts. Professionally prescribed health aids are fully exempt. Law: Ind. Code 34-55-10-2(c)(2)-(4); Ind. Code 750 IAC 1-1-1(c) |
Wages | A creditor can garnish no more than the lesser of 25% of your weekly take-home pay or the amount by which it is above 30 times the federal minimum hourly wage. A court can lower the 25% to as little as 10% if you show good cause. Law: Ind. Code 37-2-6-4(b) (formerly Ind. Code 24-4.5-5-105) |
Retirement accounts | Your interest in a retirement plan is exempt to the extent of tax-deferred contributions (and Roth IRA contributions), their tax-deferred earnings and rollovers. Law: Ind. Code 34-55-10-2(c)(6) |
Public benefits | Unemployment benefits are exempt until you actually receive them. Workers' compensation is exempt from creditors (except child support). A veteran's service-connected disability benefit is exempt. Law: Ind. Code 22-4-33-3; Ind. Code 22-3-2-17; Ind. Code 34-55-10-2(c)(12) |
Other exemptions |
Law: Ind. Code 34-55-10-2(c)(11); Ind. Code 34-55-10-2(c)(7)-(8); Ind. Code 34-55-10-2(c)(9)-(10) |
Amounts: March 1, 2022; next adjustment no later than March 1, 2028.
The Indiana homestead exemption
$22,750 in the home (real estate or personal property such as a mobile home) that you or a dependent live in
Each spouse can claim this exemption for a home they own together as tenants by the entirety. Separately, real estate held as tenants by the entirety is fully exempt from debts that only one spouse owes. The amount is updated by the Indiana Department of Financial Institutions every 6 years; the current amount applies from March 1, 2022.
Law: Ind. Code 34-55-10-2(c)(5)
Law: Ind. Code 34-55-10-2(c)(1); Ind. Code 750 IAC 1-1-1(c)
IRAs, 401(k)s and pensions
Your interest in a retirement plan is exempt to the extent of tax-deferred contributions (and Roth IRA contributions), their tax-deferred earnings and rollovers.
Law: Ind. Code 34-55-10-2(c)(6)
Retirement money in tax-exempt accounts is protected whichever set of exemptions you use (IRAs subject to the 522(n) cap).
Law: 11 U.S.C. 522(b)(3)(C), 522(d)(12), 522(n)
Which state's law applies
You use the exemption law of the state where you lived (your domicile) for the full 730 days (2 years) before you filed. If you moved between states during those 2 years, you use the law of the state where you lived for the 180 days before that 2-year period, or where you lived the longest part of those 180 days.
Law: 11 U.S.C. 522(b)(3)(A)
If this rule leaves you with no exemptions at all (for example, the state's exemptions apply only to its residents and you no longer live there), you can use the federal exemptions instead.
Law: 11 U.S.C. 522(b)(3), flush language
In nearby states
- Illinois: State exemptions only. Home (homestead): $50,000 per person in a home you own or lease and live in (house and land, condominium, mobile home or co-op).
- Kentucky: State or federal, your choice. Home (homestead): $5,000 in real or personal property that you or a dependent use as a permanent home in Kentucky, or in a burial plot.
- Ohio: State exemptions only. Home (homestead): $182,625 in equity in one parcel or item of real or personal property that you or a dependent use as a residence (a house, condo or mobile home).
- Tennessee: State exemptions only. Home (homestead): $35,000 in real property you own and that you, your spouse or a dependent use as your principal residence.
What to do now in Indiana
List what you own
Every item of property goes on Official Form 106A/B.
Check the exemption list
The table above shows the Indiana amount for each kind of property.
Fill in Schedule C
The exemptions you choose go on Official Form 106C.
Get help
Ask for free help: S.D. Ind. Chapter 7 Pro Bono Panel (U.S. Bankruptcy Court) and Indiana Legal Services.
Where to get free help in Indiana
- S.D. Ind. Chapter 7 Pro Bono Panel (U.S. Bankruptcy Court)
- Indiana Legal Services · 317-631-9410
- Indiana Legal Help (statewide legal information and help finder)
- Indianapolis Legal Aid Society (Marion and nearby counties) · (317) 635-9538
- Find free legal aid at LawHelp.org
- Northern District – Court's self-help page
- Southern District – Court's self-help page
Questions about exemptions in Indiana
Can I use the federal bankruptcy exemptions in Indiana?
No. Indiana requires you to use the state exemptions.
How much home equity can I keep in Indiana?
$22,750 in the home (real estate or personal property such as a mobile home) that you or a dependent live in
Can I keep my car in Indiana?
No separate vehicle exemption. A car can be protected under the $12,100 exemption for other real estate or tangible personal property.
What personal property is protected in Indiana?
$12,100 total for other real estate or tangible personal property (household goods, furniture, clothing, a vehicle, tools and similar items). Separate $450 for intangible property such as cash and bank accounts. Professionally prescribed health aids are fully exempt.
What happens to retirement money in Indiana?
Your interest in a retirement plan is exempt to the extent of tax-deferred contributions (and Roth IRA contributions), their tax-deferred earnings and rollovers.
How much of my pay is exempt in Indiana?
A creditor can garnish no more than the lesser of 25% of your weekly take-home pay or the amount by which it is above 30 times the federal minimum hourly wage. A court can lower the 25% to as little as 10% if you show good cause.