Bankruptcy / Indiana / Chapter 7

Chapter 7 Bankruptcy Indiana: 3 Things You Need to Know

Written by Ben Tejes
Updated May 7th, 2024

You may have experienced a financial hardship and are considering filing bankruptcy in Indiana, specifically Chapter 7 bankruptcy. 

There are 3 important things to consider when pursuing Chapter 7 bankruptcy in Indiana:

  1. Do you qualify for a Chapter 7 bankruptcy and how much does it cost to file bankruptcy in Indiana?
  2. What are the alternatives to Chapter 7 bankruptcy?
  3. What is specific need-to-know Chapter 7 bankruptcy information for Indiana?

Chapter 7 bankruptcy is the most common bankruptcy in the United States (Source).

We built the follow Chapter 7 calculator to help you estimate qualification, alternatives and other information about bankruptcy.

Let’s get started to understand why Chapter 7 is a popular choice in Indiana.

1) How Chapter 7 Bankruptcy Works in Indiana

Many people we speak with care about two things:

  1. How fast they can get relief from their debt burden.
  2. How much is costs to get out of their debt burden?

When comparing debt-relief options, Chapter 7 bankruptcy often wins in both categories over alternatives such a Chapter 13 bankruptcy, debt negotiation, debt management, and debt payoff planning. Let’s explore those variables in greater detail.

How Fast Do You Get Relief in A Chapter 7 Bankruptcy in Indiana

You can often get a Chapter 7 bankruptcy discharge in as little as 120 days in Indiana. That is the typical time it takes to complete a no-asset Chapter 7 case in Indiana. No-asset generally means that you do not own a home or other assets that may be above the Indiana bankruptcy exemptions.  

How Much Does It Cost To File Chapter 7 bankruptcy in Indiana

The Chapter 7 bankruptcy cost nationwide tends to be between $500 and $3000. That said, Chapter 7 bankruptcy cost in Indiana is different. 

The Chapter 7 bankruptcy cost may even be different if you are filing in Evansville vs. Fort Wayne. For example, you may pay a Chapter 7 bankruptcy attorney fee of $1,090 in Evansville, but pay a bankruptcy attorney fee of $1,000 in Indianapolis.

Also, there are instances where the cost to file bankruptcy can be reduced based on a filing fee waiver. You should consider seeing the information related to Indiana filing fee waiver.

So, How Do I Qualify For Chapter 7 Bankruptcy in Indiana?

Chapter 7 bankruptcies are intended for people who cannot afford to pay any portion of their debts. However, you must first pass an income evaluation to qualify for a bankruptcy discharge (forgiveness of debt) in Chapter 7.

If you pass the Indiana bankruptcy means test (which you can estimate below), you can erase most unsecured debts through Chapter 7. Unsecured debts discharged in Chapter 7 include medical bills, personal loans, some old income tax debt, old utility bills, credit card debts, and most personal judgments. Unsecured creditors hold debts that are not secured by collateral. 

What about secured debts in Chapter 7?

If, however, you want to get rid of secured debts, like car loans and mortgages in Chapter 7, you need to surrender the asset to the creditor. The creditor must accept the asset as full payment of the amount owed. 

Let’s go into how you qualify for Chapter 7 bankruptcy.

IMPORTANT: Chapter 7 Qualification via Indiana Means Test

An important element in filing for bankruptcy relief is the means test. The means test is a bankruptcy form that calculates your average monthly and annual income. The test compares your income against the median income of other households in Indiana.

If your average annual income or median income is below the Indiana median income, you may qualify for a bankruptcy discharge under Chapter 7. You can estimate whether you qualify for a Chapter 7 bankruptcy using the free Indiana Chapter 7 Bankruptcy Means Test Calculator below. 

Help! My Income Exceeded The Chapter 7 Means Test Allowable in Indiana

If your median income is above the state median income, you may need to look at part 2 of the means test or at an alternative. 

The Means Test is a two-part test, so it is not a simple pass-fail test. If you “fail” the first section, you can “pass” the second section and still qualify under Chapter 7.  

You can learn more about passing the Chapter 7 means test when income exceeds the median.

Chapter 7 Bankruptcy Indiana Income Limits

The Indiana median income figures for the Means Test are adjusted periodically, based on IRS and Census Bureau data. Indiana median income for bankruptcy cases filed on or after April 1, 2024 is:

# of PeopleAnnual Income

For Indiana households with more than 9 members, add $9,000 for each additional family member. You should always double-check the US Trustees website for the most current figures when calculating the Means Test.

Will I lose my belongings if I file Chapter 7 bankruptcy? Understand Indiana bankruptcy exemptions

Bankruptcy exemptions protect the equity in your property in a bankruptcy case. Likewise, property not protected by bankruptcy exemptions may be sold in a Chapter 7 liquidation case. Note also that for Chapter 13 cases, non-exempt equity in the property can increase the bankruptcy plan payment. 

The most important asset most people like to protect is their home. See the Indiana bankruptcy homestead exemption below.

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)

It is important to review additional Indiana bankruptcy exemptions and choose those exemptions that best protect your assets.

The federal bankruptcy exemptions are detailed in 11 U.S. Code §522. The National Consumer Law Center maintains a list of federal bankruptcy exemptions on its website. Indiana is a state that does not allow you to use federal bankruptcy exemptions

Always check that you use the most current information available when analyzing bankruptcy exemptions. 

Chapter 7 Bankruptcy Indiana Pros and Cons

Like any debt relief option, Chapter 7 bankruptcy in Indiana has pros and cons to consider. For example, you may own a home in Indianapolis with equity well above the exemption. In a Chapter 7 bankruptcy, you may be at risk of losing your home. Let's cover the different pros and cons.


  1. Often the least expensive debt relief options
  2. Receive discharge in about 120 days
  3. Potentially keep your home and belongings
  4. Stop debt collection lawsuits
  5. No more deficiency
  6. It can relieve an unaffordable unsecured debt


  1. Income requirements for qualification
  2. Potentially lose your home and other belongings when above the exemption
  3. Negative credit report impact for 10 years
  4. Negative credit score impact (in some situations)
  5. Non-dischargeable debt
  6. Difficult to prevent foreclosure
Now that we've covered the pros and cons, let's chat about the Chapter 7 bankruptcy alternatives in Indiana.

2) Alternatives to Chapter 7 Bankruptcy in Indiana

Let’s cover the Chapter 7 bankruptcy alternatives in Indiana in case you do not qualify for Chapter 7 bankruptcy, have too many assets, or do not wish to pursue Chapter 7 bankruptcy.

a) Chapter 13 Bankruptcy in Indiana

For those who make above the income limit for Chapter 7, debt relief can still come through a filing a Chapter 13 bankruptcy. A Chapter 13 Bankruptcy in Indiana case allows you to restructure your debts into an affordable monthly plan. By restructuring debts, many people can afford to keep their homes and vehicles under Chapter 13.

Chapter 13 stops foreclosures in Indiana, repossessions, and potentially stops Indiana wage garnishments. Chapter 13 bankruptcy also allows you to pay back mortgage payments, past-due car payments, and tax debt over three to five years through a bankruptcy plan. In addition, Indiana may also allow you to reduce unpaid child support and alimony. However, you must resume your normal domestic support payments to remain in Chapter 13.

In a Chapter 13 plan, some debtors (the person filing the bankruptcy case) can lower their car loan payments and erase second mortgages, if they meet certain requirements. 

Can you afford Chapter 13 bankruptcy?

Let’s say you do not qualify for a Indiana Chapter 7 bankruptcy and are wondering whether you should pursue a Chapter 13 bankruptcy. Can you afford it? It may be odd to ask whether you can afford bankruptcy, but it’s an important question to ask.

To understand whether you can potentially afford a Chapter 13 bankruptcy, you may want to take the Chapter 13 calculator below to estimate whether you can afford the monthly payment. 

b) Debt Relief

IN debt relief can be less expensive than both Debt Management and Debt Payoff Planning because the debt management company is negotiating a lower amount on your total debt. We covered the pricing estimate differences in our article covering debt management vs debt settlement.

You should consider the following if you are pursuing debt settlement: Credit score impact, debt settlement pros and cons, and avoiding Debt Settlement companies with red flags.

c) Indiana Debt Management

Debt settlement companies negotiate lower amounts. Debt management companies negotiate lower interest rates. This is the key distinction. Often these programs last 3 or 5 years. This option is often more expensive than debt settlement and some creditors such as personal loan lenders may not work with the debt management company. There may be debt management credit score implications as well.

Who may debt management in Indiana best for? Debt management may be best for those that have all high-interest credit card debt, and a reduction from 22-30% interest rate to a 10% interest rate would continue to make the debt affordable.

d) Indiana Debt Payoff Planning

You may be able to get out of debt through debt payoff planning, which is often a combination of trying to reduce expenses and putting extra cash into specific debts to avoid interest. You may not be able to do this because of the size of the financial hardship, but if you are interested, we build the Savvy debt payoff planner to help prioritize your debts. The app saves about $2,000 in interest on average by using the savvy debt payoff method instead of the snowball debt payoff method.

3) Specific Indiana Chapter 7 Bankruptcy Information:

Let’s say you went through the 2 steps above and are now considering whether Chapter 7 bankruptcy is the right choice for you. Let’s go through some attributes about filing Chapter 7 bankruptcy in Indiana that would be helpful to consider.

Indiana Chapter 7 Bankruptcy Credit Counseling and Debtor Education Courses

When you file for bankruptcy relief under Chapter 7 bankruptcy, you must complete two bankruptcy courses to receive a bankruptcy discharge. This includes a credit counseling course prior to filing a bankruptcy case, and a debtor education course after filing. See below the approved courses for Indiana

The United States Trustee’s office has approved state-specific companies that offer bankruptcy courses. You can access a list of companies in Indiana offering bankruptcy courses on the US Trustee's website. Both courses are available online for a small fee.

Indiana Chapter 7 bankruptcy Court Locations

Many 341 meetings of creditors have been over the phone or over Zoom due to the pandemic. That said, you may want to see where the courthouse is in Indiana if there are any meetings that need to take place in person. Below are the court locations for filing bankruptcy based on the bankruptcy district.

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


  • 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

Chapter 7 Bankruptcy Trustees Indiana

Below are the Chapter 7 bankruptcy trustees in Indiana broken out by bankruptcy district. You can also find the list here

NorthernGary D. Boyn(574) 294-7491
NorthernEdward Chosnek(765) 742-9081
NorthernDaniel L. Freeland(219) 922-0800
NorthernGordon E. Gouveia(219) 736-6020
NorthernJacqueline S. Homann(574) 233-1194
NorthernRebecca L. Hoyt-Fischer(219) 284-2354
NorthernYvette G. Kleven(260) 407-7000
NorthernKenneth A. Manning(219) 865-8376
NorthernJ. Richard Ransel(574) 294-7473
NorthernDustin M. Roach(260) 424-8132
NorthernMartin E. Seifert(260) 426-0444
NorthernMark A. Warsco(219) 423-2537
NorthernKimberly A. Wright(765) 742-7259
SouthernCharity S. Bird(765) 962-7527
SouthernDeborah J. Caruso(317) 634-0300
SouthernKathryn L. Pry Coryell(812) 944-2646
SouthernGregory S. Fehribach(317) 638-2400
SouthernJoanne B. Friedmeyer(317) 755-3103
SouthernJenice R. Golson-Dunlap(317) 263-3580
SouthernPaul D. Gresk(317) 237-7911
SouthernMichael J. Hebenstreit(317) 638-5555
SouthernThomas A. Krudy(317) 635-4428
SouthernR. Stephen LaPlante(812) 463-6093
SouthernLou Ann Marocco(317) 631-0145
SouthernJohn J. Petr(317) 692-9000
SouthernGregory K. Silver(317) 590-0418
SouthernAnastasia M. Wissel(812) 886-6452
SouthernRandall Lee Woodruff(765) 644-6464

In addition to the above, review Indiana local bankruptcy rules before filing a bankruptcy case. Some local rules may differ slightly from the Federal Bankruptcy Rules.


Hopefully, now you know much more about Chapter 7 bankruptcy in Indiana. You can take the Chapter 7 bankruptcy means test calculator below if you’re interested to estimate qualification and cos

For more information about Chapter 7 bankruptcy, check out our Chapter 7 bankruptcy process

Most people work with a bankruptcy attorney in both Chapter 7 and Chapter 13, but there is the option to file without a bankruptcy attorney. Read filing bankruptcy without an attorney to learn how.