Indiana Bankruptcy Means Test Income Thresholds (2026)
Indiana's diverse economy spans from Indianapolis's corporate and healthcare sectors to manufacturing communities where economic transitions have created financial instability. If you're considering bankruptcy in Indiana, understanding your means test thresholds is essential. Indiana requires filers to use state exemptions exclusively; federal exemptions are not available.
The means test is the primary gateway for Chapter 7 bankruptcy eligibility. If your household income falls below Indiana's median income threshold for your family size, you pass the test automatically and likely qualify for Chapter 7.
| Household Size | Northern District | Southern District |
|---|---|---|
| 1 person | $55,620 | $54,288 |
| 2 people | $68,238 | $66,600 |
| 3 people | $79,188 | $77,220 |
| 4 people | $96,024 | $93,864 |
The Northern District (which includes Indianapolis, the state's largest metro area) has slightly higher median income thresholds than the Southern District because of higher average household incomes in the Indianapolis region. If your household income is below these numbers, you very likely qualify for Chapter 7. These thresholds update every 6 months on April 1 and October 1.
Indiana's means test thresholds are middle-range nationally. Many Indiana residents will pass the means test and qualify for Chapter 7 outright.
Indiana Bankruptcy Exemptions
Indiana provides state exemptions that are moderate and relatively straightforward. The framework emphasizes reasonable homestead protection for owners and solid personal property coverage, though Indiana's lack of a wildcard exemption creates less flexibility than some states.
| Asset Type | Exemption Amount | Notes |
|---|---|---|
| Primary Residence | $22,750 per person | Moderate homestead protection. Lower than Michigan ($44,625) but higher than Georgia ($21,500). Covers only primary residence. |
| Motor Vehicle | No specific exemption | No dedicated vehicle protection. Vehicle equity must be protected through tangible personal property exemption. |
| Personal Property (Tangible) | $10,250 total | Household goods, clothing, electronics. Total limit of $10,250 for all tangible personal property combined. Higher than Georgia but less than Michigan. |
| Wildcard Exemption | None | Indiana provides no wildcard exemption. Assets must fit into specific categories. Less flexible than states with wildcard protection. |
| Retirement Accounts | Fully exempt | IRAs, 401(k)s, pensions, and ERISA-qualified plans are completely protected. Strong retirement account protection. |
| Wages | 75% of disposable earnings | Or 30 times federal minimum wage per week, whichever is greater. Strong wage protection for employed filers. |
| Tools of Trade | No specific exemption | Indiana provides no dedicated tools of trade exemption. Self-employed filers must use the personal property exemption. |
Moderate Homestead Protection
Indiana's $22,750 homestead exemption is moderate compared to neighboring states. Michigan's $44,625 is nearly double, while Georgia's is lower at $21,500. For a homeowner with a $250,000 home and $30,000 in equity, you can protect $22,750, leaving $7,250 vulnerable in Chapter 7. However, many trustees won't liquidate homes with such modest equity margins, and Chapter 13 allows you to keep your home through a repayment plan.
Tangible Personal Property Cap
Indiana's $10,250 total personal property exemption is a combined limit for all household goods, clothing, electronics, and other tangible items. Unlike some states that exempt certain categories separately, Indiana groups everything into this single pool. This makes exemption planning more straightforward but less flexible.
No Dedicated Vehicle Exemption
Like Tennessee and Alabama, Indiana provides no specific vehicle exemption. Vehicle equity must come from the $10,250 personal property exemption. For filers with a single modest car, this typically works. However, if you have a more valuable vehicle or multiple cars, you have limited flexibility.
No Wildcard Exemption
Indiana has no wildcard exemption, making the state less flexible than Tennessee (which allows $10,000 wildcard) or Georgia (which allows $600 + unused homestead wildcard). This means assets must fit into specific categories. Property that doesn't fit neatly is at risk.
Indiana Bankruptcy Courts and Districts
Indiana bankruptcy cases are filed in one of two federal districts covering different regions of the state. Your filing location depends on where you've resided for the 180 days before filing. Each district has distinct characteristics regarding case volume and processing speed.
Northern District of Indiana
Covers Indianapolis, South Bend, Fort Wayne, Hammond, and surrounding northern Indiana. Court locations: Indianapolis, South Bend, Fort Wayne, Hammond. The Northern District is the busier of Indiana's two districts, driven by Indianapolis's status as the state's largest metro area and economic hub. The district moves cases efficiently with Chapter 7 discharge typically occurring in 4-5 months despite the volume.
Southern District of Indiana
Covers Terre Haute, Evansville, New Albany, and surrounding southern Indiana. Court locations: Terre Haute, Evansville, New Albany. The Southern District handles lower filing volume from the southern and western regions of the state. Cases often move quickly here due to lower volume, with Chapter 7 discharge sometimes occurring in 4 months or less. The District's judges typically have more time for individual cases.
Your filing district is determined by your primary residence for the 180 days before filing. These residency requirements are strict.
Filing Bankruptcy in Indiana with Frankie
Frankie provides complete bankruptcy filing services for Indiana residents at a flat fee of $1,999. This includes full petition preparation, means test calculations, exemption analysis using Indiana's framework, filing with your appropriate Indiana bankruptcy court, 341 hearing preparation, and guidance through discharge.
What's Included in the $1,999 Fee
- Complete bankruptcy petition preparation (Chapter 7 or Chapter 13)
- Means test calculation and analysis
- Indiana exemption analysis and asset protection planning
- Credit counseling course documentation
- Filing with the appropriate Indiana bankruptcy court (Northern or Southern District)
- 341 meeting of creditors preparation and representation
- Post-filing support through discharge
Indiana Federal Court Filing Fees
Beyond Frankie's attorney fee, you'll pay federal court filing fees:
- Chapter 7 filing fee: $335
- Chapter 13 filing fee: $310
- Credit counseling course: $25-$50
Total out-of-pocket cost for Chapter 7 in Indiana is approximately $2,359-$2,384 ($1,999 attorney + $335 filing fee + $25-$50 counseling). Chapter 13 is slightly lower at $2,334-$2,359. These are one-time costs at filing. Chapter 13 filers also pay monthly trustee fees as part of their repayment plan.
Check Your Indiana Bankruptcy Eligibility
Determine whether you qualify for Chapter 7 or Chapter 13 based on your income, assets, and debts.
Start Assessment →Frequently Asked Questions About Indiana Bankruptcy
In Chapter 7, you keep your home if your equity is below $22,750. If your equity exceeds this amount, the trustee may sell it. In Chapter 13, you keep your home and make monthly payments over 3-5 years. Many Indiana homeowners choose Chapter 13 specifically to protect home equity.
Since Indiana has no dedicated vehicle exemption, your car's equity is protected through the $10,250 tangible personal property exemption. For most modest cars (worth $8,000-$10,000), this provides adequate protection. You can also reaffirm your car loan to protect it regardless of equity.
Indiana's no wildcard exemption means assets must fit into specific categories to be protected. You can't take unused homestead exemption and apply it to other assets like you can in Georgia or Tennessee. This makes exemption planning more rigid but also more straightforward.
Chapter 7 typically takes 4-5 months from filing to discharge in Indiana. Chapter 13 takes 3-5 years as you make monthly payments to your trustee. The Southern District sometimes moves faster due to lower case volume.
Additional Resources
- How Bankruptcy Works: Complete Guide
- Debt Settlement vs Bankruptcy
- Frequently Asked Questions
- Check Your Eligibility
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