Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In Indiana, bankruptcy exemptions play a crucial role in protecting certain assets of individuals filing for bankruptcy. Indiana has its own set of bankruptcy exemptions that residents are required to use, as it does not allow debtors to choose the federal bankruptcy exemptions. These exemptions include specific amounts of equity in a debtor's residence, personal property such as household goods, health aids, retirement plans, and certain benefits like unemployment and workers' compensation. Additionally, Indiana provides a wildcard exemption that can be applied to any property. It's important for debtors to understand that they must adhere to Indiana's exemptions and cannot mix and match with federal exemptions. An attorney can provide guidance on how to best utilize these exemptions to protect assets during the bankruptcy process.