Bankruptcy / Indiana / Indianapolis

Filing Bankruptcy in Indianapolis: 7 Things You Need to Know

Written by Ben Tejes
Updated Apr 14th, 2022

You are considering filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy in Indianapolis. Bankruptcy is a common debt relief choice. In fact, many people in Indiana have received bankruptcy relief, and Indianapolis is no different. In fact, there were 15,719 bankruptcies filed in Indiana in the year ending June 30, 2021 (Source). With a population of 876384, I’d estimate a fair number of those were in Indianapolis.

The purpose of this article is to provide an extensive list of filing bankruptcy in Indianapolis including:

  1. Chapter 7 Bankruptcy in Indianapolis
  2. Chapter 13 Bankruptcy in Indianapolis
  3. Indianapolis Bankruptcy Attorney Fees
  4. Finding a Reputable Bankruptcy Lawyer in Indianapolis
  5. Estimating Loss of Belonging (i.e.
  6. Getting Bankruptcy Help in Indianapolis
  7. Bankruptcy Alternatives and Conclusion

Without further ado, let’s get started with Chapter 7 bankruptcy.

Chapter 7 Bankruptcy in Indianapolis

Chapter 7 bankruptcy is the most common consumer bankruptcy in the United States. People appreciate the simplicity of Chapter 7 bankruptcy, the cost of the Chapter 7 bankruptcy, and the speed of debt relief. For example, in Indianapolis, you could get debt relief in about 120 days with a Chapter 7 bankruptcy.

One of the challenges of Chapter 7 bankruptcy in Indianapolis is that you have to qualify (which you can estimate below). In order to qualify in Indianapolis, you often have to pass the Indiana bankruptcy means test. You can estimate that qualification below in Indianapolis. Let’s cover how you can qualify.

Chapter 7 Qualification

The first part of the means test is to understand your income in relation to the median income levels for Indiana. It considers the average family size and income.

To estimate your qualification, you can take the Indianapolis Chapter 7 qualification calculator below that is specific to Indianapolis.

Finally, the most recent Indiana median income levels is for cases filed on or after April 1, 2022, and can be found below.

# of PeopleAnnual Income
1$54,785
2$69,505
3$81,783
4$96,083
5$105,083
6$114,083
7$123,083
8$132,083
9$141,083

If your income exceeds the median, you can move on to the second part of the means test to estimate qualification. The second part of the means test is to understand your actual expenses. You can check out our guide covering trying to qualify for Chapter 7 bankruptcy above the median.

For example, the average median rent amount in Indianapolis is $892, but let's say your rent is almost double that amount. Could you potentially still qualify for Chapter 7 bankruptcy because of those additional expenses? What you are able to state as ab expense is limited, and you can refer to the current national standard for the maximum amounts, but you may want to speak with your attorney about this situation.

Chapter 13 Bankruptcy in Indianapolis

Chapter 13 bankruptcy is known as a wage-earner bankruptcy. Chapter 13 bankruptcy is a voluntary reorganization of debt.  In Chapter 13 bankruptcy, the individual has debt that they can no longer manage and often own assets that exceed state and/or federal relief. Folks file Chapter 13 bankruptcy often when they do not qualify for Chapter 7 bankruptcy.  

Most individuals in Indianapolis will qualify for Chapter 13 bankruptcy as long as they are below the debt limits.

Compared to Chapter 7, there is no liquidation in Chapter 13 Bankruptcy. Although, the discharge won’t be until around 3 to 5 years. The Chapter 13 bankruptcy will stay on your credit report for 7 years.

Indianapolis Bankruptcy Attorney Fees

When looking for a bankruptcy attorney, we recommend that you look for these 5 attributes: Rate, Reliability, Referrals, Reviews, and Relevancy. You can check our guide to find a top bankruptcy attorney in Indianapolis.

The estimated Chapter 7 bankruptcy lawyer fee in Indianapolis is: $1000 - $1400.

The estimated Chapter 13 bankruptcy lawyer fee in Indianapolis is: $3,500. The Chapter 13 attorney fee is often set across the district, meaning that all Chapter 13 bankruptcy attorneys in a district may charge around the same fee.

Indianapolis Bankruptcy Attorneys

One of the most important things to do is to find a reputable bankruptcy attorney in Indianapolis if you decide to hire one. This is legal advice related to finances that are going to affect your future. For example, making sure you are in the right bankruptcy chapter (Chapter 7 vs Chapter 13) could cost you thousands more and take you years longer.

Chapter 7 Bankruptcy Lawyer

As stated above, Indianapolis has a population of 876384. In many cases, individuals in larger cities such as Indianapolis or Fort Wayne would like a bankruptcy lawyer close by. In smaller cities, I have found that individuals have questions about whether the bankruptcy will show up in the newspaper or whether friends will hear about it. This is a valid question.

Regardless, you can check the Chapter 7 bankruptcy lawyers in or near Indianapolis using the table below. You just need to input your zip code, and voila, you can choose which Chapter 7 bankruptcy lawyer you would like to speak to near or far away from Indianapolis in a free bankruptcy lawyer consultation

Chapter 13 Bankruptcy Lawyer

Filing a Chapter 13 bankruptcy in Indianapolis may be a bit more intensive, so you may consider a Chapter 13 bankruptcy that is closer to you. That said, with the internet and the pandemic, many of the meetings are now online and you can generally submit your documentation online as well.

Regardless, you can use the table below to find a Chapter 13 bankruptcy lawyer in or near Indianapolis.

Zip code
guidhas_phoneFirmEst. RateRatingReviewsRelevancyFree ConsultPayment PlansContact

Bankruptcy Exemptions in Indiana

As you live in Indianapolis, you are often able to use the Indiana bankruptcy exemptions to help you keep your belongings.

One of the biggest questions people have is whether they are able to keep their homes in bankruptcy. This is where bankruptcy exemptions come into play. As Indianapolis has a home ownership % of 53.1% and an estimated estimated home value of $135271, you can understand that many people want to keep this asset. You can often keep your assets using bankruptcy exemptions.

Here are the Indiana bankruptcy exemptions. The exemptions are revised on different occasions, so you may wish to check the most current information on exemptions. Also, as a reference, Indiana is a place that does not allow you to use federal bankruptcy exemptions. You often have to choose which one to use, so a bankruptcy attorney can help you with that option.

Homestead Exemption

The homestead exemption is often broken down by age and whether you are married. 

  • Single and under 65: $19,300
  • Single is 65 or older: $19,300
  • Married and under 65: $38,600
  • Married is 65 or older: $38,600

Indiana specific homestead bankruptcy exemption text: “Ind. Code Ann. § 34-55-10-2(b)(1). Real or personal property used as residence to $19,300. Property held as tenancy by the entirety may be exempt against debts incurred by only one spouse” (Source)

Automobile Exemption

The automobile bankruptcy exemption in Indiana is $0.

Wildcard Exemption

The wildcard bankruptcy exemption in Indiana is $10,250.

Special Exemption Handling for Indiana

Below is specific special handling of bankruptcy exemptions in Indiana.

Bankruptcy Help in Indianapolis

Unemployment can cause both frustration and angst about options. The most recent statistic I found is that the Indianapolis unemployment rate is 6.4%. There may be resources available to help. In addition to the unemployment rate, Indianapolis has a disability rate of 13.3%. As such, if you are truly in need and don’t have income, there are resources that may be available that can help you.

Check out the legal aid and free resources that may be available in Indianapolis.

Legal Aid and Free Resources

Here are some legal aid resources that may be helpful to you in Indianapolis.

The bankruptcy court and district may have free resources that are available to you. I have included the information below. 

Lastly, Indianapolis also has a limited English rate of 3.8% and a poverty rate of 18%. If you have limited English, you may check out the court websites for Indiana for additional information on how you can be served. You can also see how filing bankruptcy without an attorney can work if you cannot afford a bankruptcy lawyer.

Courts and Districts in Indiana

Northern District

  • United States District Court
    Northern District of Indiana
    1300 S. Harrison St.
    Fort Wayne, IN 46802
  • United States District Court
    Northern District of Indiana
    5400 Federal Plaza
    Suite 2300
    Hammond, IN 46320
  • United States District Court
    Northern District of Indiana
    Charles A. Halleck Federal Building
    230 North Fourth St., Room 105
    Lafayette, IN 47901-1322
  • United States District Court
    102 Federal Building
    204 S Main St
    South Bend, IN 46601

Southern

  • Birch Bayh Federal Building & U.S. Courthouse
    46 East Ohio Street
    Indianapolis, IN 46204
  • U.S. Courthouse
    921 Ohio Street
    Terre Haute, IN 47807
  • Winfield K. Denton Federal Building & U.S. Courthouse
    101 Northwest Martin Luther King Boulevard
    Evansville, IN 47708
  • Lee H. Hamilton Federal Building & U.S. Courthouse
    121 West Spring Street
    New Albany, IN 47150

Debt Settlement in Indianapolis

One of the most common alternatives to bankruptcy is debt settlement. A debt settlement firm would negotiate for a lower amount due on your debt in the case of financial hardship. The goal would be to reduce your debt in half. In this case, you would have a lower monthly payment.

If you are looking at debt settlement in Indianapolis, you may want to consider a national debt settlement firm to a local one in Indianapolis. For example, most of your creditors are probably national banks instead of local Indianapolis banks. As such, you can potentially get lower fees by using a national firm. You should strongly consider the pros and cons and credit score impact before taking the plunge as Ascend only recommends 2 debt settlement firms nationwide that both offer free phone evaluations.

Conclusion

Chapter 7 bankruptcy and Chapter 13 bankruptcy in Indianapolis can provide debt relief. That said, you may want to consider the cost of bankruptcy in Indianapolis, the different bankruptcy chapters, reputable attorneys in Indianapolis and alternatives to help you make the most informed decision. 

You can also take our Chapter 7 vs Chapter calculator below to help you estimate the cost and qualification of Chapter 7 bankruptcy and Chapter 13 bankruptcy in Indianapolis.