§ 34-55-10-2 — Bankruptcy exemptions; limitations

Indiana § 34-55-10-2

• Jurisdiction: Indiana
• Title 34: CIVIL LAW AND PROCEDURE
• Art. 55: EXECUTION OF JUDGMENTS
• Ch. 10: Sales and Execution of Real Estate: Exemptions

Text

(a) This section does not apply to judgments
obtained before October 1, 1977.
(b) The amount of each exemption under subsection (c) applies until
a rule is adopted by the department of financial institutions under
section 2.5 of this chapter.
(c) The following property of a debtor domiciled in Indiana is
exempt:
(1) Real estate or personal property constituting the personal or
family residence of the debtor or a dependent of the debtor, or
estates or rights in that real estate or personal property, of not
more than fifteen thousand dollars ($15,000). The exemption
under this subdivision is individually available to joint debtors
concerning property held by them as tenants by the entireties.
(2) Other real estate or tangible personal property of eight
thousand dollars ($8,000).
(3) Intangible personal property, including choses in action,
deposit accounts, and cash (but excluding debts owing and
income owing), of three hundred dollars ($300).
(4) Professionally prescribed health aids for the debtor or a
dependent of the debtor.
(5) Any interest that the debtor has in real estate held as a tenant
by the entireties. The exemption under this subdivision does not
apply to a debt for which the debtor and the debtor's spouse are
jointly liable.
(6) An interest, whether vested or not, that the debtor has in a
retirement plan or fund to the extent of:
(A) contributions, or portions of contributions, that were made
to the retirement plan or fund by or on behalf of the debtor or
the debtor's spouse:
(i) which were not subject to federal income taxation to the
debtor at the time of the contribution; or
(ii) which are made to an individual retirement account in the
manner prescribed by Section 408A of the Internal Revenue
Code of 1986;
(B) earnings on contributions made under clause (A) that are
not subject to federal income taxation at the time of the levy;
and
(C) roll-overs of contributions made under clause (A) that are
not subject to federal income taxation at the time of the levy.
(7) Money that is in a medical care savings account established
under IC 6-8-11.
(8) Money that is in a health savings account established under
Section 223 of the Internal Revenue Code of 1986.
(9) Any interest the debtor has in a qualified tuition program, as
defined in Section 529(b) of the Internal Revenue Code of 1986,
but only to the extent funds in the program are not attributable to:
(A) excess contributions, as described in Section 529(b)(6) of
the Internal Revenue Code of 1986, and earnings on the excess
contributions;
(B) contributions made by the debtor within one (1) year before
the date of the levy or the date a bankruptcy petition is filed by
or against the debtor, and earnings on the contributions; or
(C) the excess over five thousand dollars ($5,000) of aggregate
contributions made by the debtor for all programs under this
subdivision and education savings accounts under subdivision
(10) having the same designated beneficiary:
(i) not later than one (1) year before; and
(ii) not earlier than two (2) years before;
the date of the levy or the date a bankruptcy petition is filed by
or against the debtor, and earnings on the aggregate
contributions.
(10) Any interest the debtor has in an education savings account,
as defined in Section 530(b) of the Internal Revenue Code of
1986, but only to the extent funds in the account are not
attributable to:
(A) excess contributions, as described in Section 4973(e) of the
Internal Revenue Code of 1986, and earnings on the excess
contributions;
(B) contributions made by the debtor within one (1) year before
the date of the levy or the date a bankruptcy petition is filed by
or against the debtor, and earnings on the contributions; or
(C) the excess over five thousand dollars ($5,000) of aggregate
contributions made by the debtor for all accounts under this
subdivision and qualified tuition programs under subdivision
(9) having the same designated beneficiary:
(i) not later than one (1) year before; and
(ii) not earlier than two (2) years before;
the date of the levy or the date a bankruptcy petition is filed by
or against the debtor, and earnings on the excess contributions.
(11) The debtor's interest in a refund or a credit received or to be
received under the following:
(A) Section 32 of the Internal Revenue Code of 1986 (the
federal earned income tax credit).
(B) IC 6-3.1-21-6 (the Indiana earned income tax credit).
(12) A disability benefit awarded to a veteran for a service
connected disability under 38 U.S.C. 1101 et seq. This
subdivision does not apply to a service connected disability
benefit that is subject to child and spousal support enforcement
under 42 U.S.C. 659(h)(1)(A)(ii)(V).
(13) Compensation distributed from the supplemental state fair
relief fund under IC 34-13-8 to an eligible person (as defined in
IC 34-13-8-1) for an occurrence (as defined in IC 34-13-8-2). This
subdivision applies even if a debtor is not domiciled in Indiana.
(d) A bankruptcy proceeding that results in the ownership by the
bankruptcy estate of a debtor's interest in property held in a tenancy by
the entireties does not result in a severance of the tenancy by the
entireties.
(e) Real estate or personal property upon which a debtor has
voluntarily granted a lien is not, to the extent of the balance due on the
debt secured by the lien:
(1) subject to this chapter; or
(2) exempt from levy or sale on execution or any other final
process from a court.
[Pre-1998 Recodification Citations: 34-2-28-1(a);
34-2-28-1(b); 34-2-28-1(c); 34-2-28-1(d).]

Legislative History

As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005, SEC.10; P.L.145-2008, SEC.33; P.L.44-2010, SEC.1; P.L.53-2010, SEC.1; P.L.42-2011, SEC.73; P.L.160-2012, SEC.65.