CHAPTER 10. SALES AND EXECUTION OF REAL ESTATE: EXEMPTIONS
IC 34-55-10
Chapter 10. Sales and Execution of Real Estate: Exemptions
IC 34-55-10-1
Bankruptcy exemptions
Sec. 1. In accordance with Section 522(b) of the Bankruptcy Codeof 1978 (11 U.S.C. 522(b)), in any bankruptcy proceeding, anindividual debtor domiciled in Indiana is not entitled to the federalexemptions as provided by Section 522(d) of the Bankruptcy Codeof 1978 (11 U.S.C. 522(d)).
As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005, SEC.9.
IC 34-55-10-2 Version a
Bankruptcy exemptions; limitations
Note: This version of section amended by P.L.44-2010, SEC.1.See also following version of this section amended by P.L.53-2010,SEC.1.
Sec. 2. (a) This section does not apply to judgments obtainedbefore October 1, 1977.
(b) The amount of each exemption under subsection (c) appliesuntil a rule is adopted by the department of financial institutionsunder section 2.5 of this chapter.
(c) The following property of a debtor domiciled in Indiana isexempt:
(1) Real estate or personal property constituting the personal orfamily residence of the debtor or a dependent of the debtor, orestates or rights in that real estate or personal property, of notmore than fifteen thousand dollars ($15,000). The exemptionunder this subdivision is individually available to joint debtorsconcerning property held by them as tenants by the entireties.
(2) Other real estate or tangible personal property of eightthousand dollars ($8,000).
(3) Intangible personal property, including choses in action,deposit accounts, and cash (but excluding debts owing andincome owing), of three hundred dollars ($300).
(4) Professionally prescribed health aids for the debtor or adependent of the debtor.
(5) Any interest that the debtor has in real estate held as a tenantby the entireties. The exemption under this subdivision does notapply to a debt for which the debtor and the debtor's spouse arejointly liable.
(6) An interest, whether vested or not, that the debtor has in aretirement plan or fund to the extent of:
(A) contributions, or portions of contributions, that weremade to the retirement plan or fund by or on behalf of thedebtor or the debtor's spouse:
(i) which were not subject to federal income taxation tothe debtor at the time of the contribution; or
(ii) which are made to an individual retirement account inthe manner prescribed by Section 408A of the Internal
Revenue Code of 1986;
(B) earnings on contributions made under clause (A) that arenot subject to federal income taxation at the time of the levy;and
(C) roll-overs of contributions made under clause (A) thatare not subject to federal income taxation at the time of thelevy.
(7) Money that is in a medical care savings account establishedunder IC 6-8-11.
(8) Money that is in a health savings account established underSection 223 of the Internal Revenue Code of 1986.
(9) Any interest the debtor has in a qualified tuition program, asdefined in Section 529(b) of the Internal Revenue Code of1986, but only to the extent funds in the program are notattributable to:
(A) excess contributions, as described in Section 529(b)(6)of the Internal Revenue Code of 1986, and earnings on theexcess contributions;
(B) contributions made by the debtor within one (1) yearbefore the date of the levy or the date a bankruptcy petitionis filed by or against the debtor, and earnings on thecontributions; or
(C) the excess over five thousand dollars ($5,000) ofaggregate contributions made by the debtor for all programsunder this subdivision and education savings accounts undersubdivision (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 filedby or against the debtor, and earnings on the aggregatecontributions.
(10) Any interest the debtor has in an education savingsaccount, as defined in Section 530(b) of the Internal RevenueCode of 1986, but only to the extent funds in the account arenot attributable to:
(A) excess contributions, as described in Section 4973(e) ofthe Internal Revenue Code of 1986, and earnings on theexcess contributions;
(B) contributions made by the debtor within one (1) yearbefore the date of the levy or the date a bankruptcy petitionis filed by or against the debtor, and earnings on thecontributions; or
(C) the excess over five thousand dollars ($5,000) ofaggregate contributions made by the debtor for all accountsunder this subdivision and qualified tuition programs undersubdivision (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 filedby or against the debtor, and earnings on the excess
contributions.
(11) The debtor's interest in a refund or a credit received or tobe received under the following:
(A) Section 32 of the Internal Revenue Code of 1986 (thefederal earned income tax credit).
(B) IC 6-3.1-21-6 (the Indiana earned income tax credit).
(d) A bankruptcy proceeding that results in the ownership by thebankruptcy estate of a debtor's interest in property held in a tenancyby the entireties does not result in a severance of the tenancy by theentireties.
(e) Real estate or personal property upon which a debtor hasvoluntarily granted a lien is not, to the extent of the balance due onthe debt secured by the lien:
(1) subject to this chapter; or
(2) exempt from levy or sale on execution or any other finalprocess from a court.
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.
IC 34-55-10-2 Version b
Bankruptcy exemptions; limitations
Note: This version of section amended by P.L.53-2010, SEC.1.See also preceding version of this section amended by P.L.44-2010,SEC.1.
Sec. 2. (a) This section does not apply to judgments obtainedbefore October 1, 1977.
(b) The amount of each exemption under subsection (c) appliesuntil a rule is adopted by the department of financial institutionsunder section 2.5 of this chapter.
(c) The following property of a debtor domiciled in Indiana isexempt:
(1) Real estate or personal property constituting the personal orfamily residence of the debtor or a dependent of the debtor, orestates or rights in that real estate or personal property, of notmore than fifteen thousand dollars ($15,000). The exemptionunder this subdivision is individually available to joint debtorsconcerning property held by them as tenants by the entireties.
(2) Other real estate or tangible personal property of eightthousand dollars ($8,000).
(3) Intangible personal property, including choses in action,deposit accounts, and cash (but excluding debts owing andincome owing), of three hundred dollars ($300).
(4) Professionally prescribed health aids for the debtor or adependent of the debtor.
(5) Any interest that the debtor has in real estate held as a tenantby the entireties. The exemption under this subdivision does notapply to a debt for which the debtor and the debtor's spouse arejointly liable.
(6) An interest, whether vested or not, that the debtor has in aretirement plan or fund to the extent of: (A) contributions, or portions of contributions, that weremade to the retirement plan or fund by or on behalf of thedebtor or the debtor's spouse:
(i) which were not subject to federal income taxation tothe debtor at the time of the contribution; or
(ii) which are made to an individual retirement account inthe manner prescribed by Section 408A of the InternalRevenue Code of 1986;
(B) earnings on contributions made under clause (A) that arenot subject to federal income taxation at the time of the levy;and
(C) roll-overs of contributions made under clause (A) thatare not subject to federal income taxation at the time of thelevy.
(7) Money that is in a medical care savings account establishedunder IC 6-8-11.
(8) Money that is in a health savings account established underSection 223 of the Internal Revenue Code of 1986.
(9) Any interest the debtor has in a qualified tuition program, asdefined in Section 529(b) of the Internal Revenue Code of1986, but only to the extent funds in the program are notattributable to:
(A) excess contributions, as described in Section 529(b)(6)of the Internal Revenue Code of 1986, and earnings on theexcess contributions;
(B) contributions made by the debtor within one (1) yearbefore the date of the levy or the date a bankruptcy petitionis filed by or against the debtor, and earnings on thecontributions; or
(C) the excess over five thousand dollars ($5,000) ofaggregate contributions made by the debtor for all programsunder this subdivision and education savings accounts undersubdivision (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 filedby or against the debtor, and earnings on the aggregatecontributions.
(10) Any interest the debtor has in an education savingsaccount, as defined in Section 530(b) of the Internal RevenueCode of 1986, but only to the extent funds in the account arenot attributable to:
(A) excess contributions, as described in Section 4973(e) ofthe Internal Revenue Code of 1986, and earnings on theexcess contributions;
(B) contributions made by the debtor within one (1) yearbefore the date of the levy or the date a bankruptcy petitionis filed by or against the debtor, and earnings on thecontributions; or
(C) the excess over five thousand dollars ($5,000) of
aggregate contributions made by the debtor for all accountsunder this subdivision and qualified tuition programs undersubdivision (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 filedby or against the debtor, and earnings on the excesscontributions.
(11) The debtor's interest in a refund or a credit received or tobe received under section 32 of the Internal Revenue Code of1986.
(12) A disability benefit awarded to a veteran for a serviceconnected disability under 38 U.S.C. 1101 et seq. Thissubdivision does not apply to a service connected disabilitybenefit that is subject to child and spousal support enforcementunder 42 U.S.C. 659(h)(1)(A)(ii)(V).
(d) A bankruptcy proceeding that results in the ownership by thebankruptcy estate of a debtor's interest in property held in a tenancyby the entireties does not result in a severance of the tenancy by theentireties.
(e) Real estate or personal property upon which a debtor hasvoluntarily granted a lien is not, to the extent of the balance due onthe debt secured by the lien:
(1) subject to this chapter; or
(2) exempt from levy or sale on execution or any other finalprocess from a court.
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.53-2010, SEC.1.
IC 34-55-10-2.5
Exemption amounts; adoption of rules
Sec. 2.5. (a) The department of financial institutions shall adopta rule under IC 4-22-2 establishing the amount for each exemptionunder section 2(c)(1) through 2(c)(3) of this chapter to take effect notearlier than January 1, 2010, and not later than March 1, 2010.
(b) The department of financial institutions shall adopt a ruleunder IC 4-22-2 establishing new amounts for each exemption undersection 2(c)(1) through 2(c)(3) of this chapter every six (6) yearsafter exemption amounts are established under subsection (a). Therule establishing new exemption amounts under this subsection musttake effect not earlier than January 1 and not later than March 1 ofthe sixth calendar year immediately following the most recentadjustments to the exemption amounts.
(c) The department of financial institutions shall determine theamount of each exemption under subsections (a) and (b) based onchanges in the Consumer Price Index for All Urban Consumers,published by the United States Department of Labor, for the mostrecent six (6) year period.
(d) The department of financial institutions shall round theamount of an exemption determined under subsections (a) and (b) to
the nearest fifty dollars ($50).
(e) A rule establishing amounts for exemptions under this sectionmay not reduce an exemption amount below the exemption amounton July 1, 2005.
As added by P.L.179-2005, SEC.11.
IC 34-55-10-3
Designation of exempt property by debtor
Sec. 3. The debtor may designate real property, personal property,or both, as the exempted property.
As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005,SEC.12.
IC 34-55-10-4
Appraisal of exempt property; selection of appraisers
Sec. 4. For the appraisal of any property to be exempted under thischapter, two (2) appraisers shall be chosen, one (1) by the plaintiffor the plaintiff's agent or attorney, and one (1) by the debtor. Thesetwo (2), in case of disagreement, shall select a third. If either partyfails to select an appraiser, one (1) shall be selected by the officerholding the execution.
As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005,SEC.13.
IC 34-55-10-5
Schedule of exempt property; affidavit of appraisers
Sec. 5. The appraisers shall make a schedule of the real andpersonal property selected by the debtor, describing the real estate bymetes and bounds, and the personal property by separate items,affixing to each the value they agree upon. The appraisers, or amajority, shall affix to the schedule an affidavit in substance asfollows: "We, the undersigned, swear that, in our opinion, theproperty described in the schedule above is valued justly.".
As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005,SEC.14.
IC 34-55-10-6
Delivery of schedule of exempt property; second or subsequentappraisals
Sec. 6. The schedule of real and personal property shall bedelivered to the officer holding the execution or other process. Theofficer shall return the schedule with the execution or other processand make the schedule a part of the return. However, all second orsubsequent appraisals under this chapter are at the cost of the partyor parties asking for the reappraisal, unless the property of the debtorat the time of the reappraisal is appraised at enough over and abovethe legal exemption to meet the costs.
As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005,SEC.15.
IC 34-55-10-7
Repealed
(Repealed by P.L.179-2005, SEC.20.)
IC 34-55-10-8
Personal property only claimed as exemption; procedure
Sec. 8. If the debtor claims as exempt from execution personalproperty only, the officer holding the execution shall cause theproperty to be appraised and set apart to the debtor, and shall proceedto sell such other property, if any, that is subject to executionaccording to law.
As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005,SEC.16.
IC 34-55-10-9
Personal and real property claimed as exemption; procedure
Sec. 9. (a) If the value of a debtor's interest in property for whichan exemption is claimed exceeds the amount of the exemption, theproperty may be sold. However, the debtor must be paid an amountequal to the debtor's exemption in the property from the proceeds ofthe sale.
(b) In making the sale under subsection (a), the officer may notaccept a bid unless the bid exceeds the exempt value of the property.If indebtedness secured by a valid lien is chargeable against theproceeds of the sale, a bid may not be accepted if the bid is less thanthe sum of the amount of the indebtedness secured by the lien and theexempt value of the property.
As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005,SEC.17.
IC 34-55-10-10
Repealed
(Repealed by P.L.179-2005, SEC.20.)
IC 34-55-10-11
Division of real property claimed as exemption; exemption ofhomestead
Sec. 11. In all cases in which real property is claimed as exemptfrom sale on execution, if the real property is susceptible of divisionby metes and bounds without material injury, the real property shallbe divided to exempt the principal dwelling house or homestead ofthe debtor.
As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005,SEC.18.
IC 34-55-10-12
Debtor's schedule required
Sec. 12. Before a debtor receives the benefit of the exemptionprovided by this chapter, the debtor shall deliver to the officerholding the execution a schedule of all the debtor's property, as
required by law, if an exemption from sale on execution is claimed.
As added by P.L.1-1998, SEC.51. Amended by P.L.179-2005,SEC.19.
IC 34-55-10-13
Absence of execution defendant; rights of spouse
Sec. 13. In any case when the execution defendant is absent fromIndiana, or is absent himself or herself from home, and an attachmentor execution is directed against the execution defendant's property,the spouse may:
(1) make out and verify the schedule of the absent spouse'sproperty, and claim and receive for the absent spouse theexemption provided in this chapter; and
(2) claim and exercise all the rights that would belong to theabsent spouse if the absent spouse were present.
As added by P.L.1-1998, SEC.51.
IC 34-55-10-14
Certain lands and taxes unaffected
Sec. 14. The exemption under this chapter does not:
(1) affect any laborer's or mechanic's lien or lien for thepurchase money of the real property exempted; or
(2) exempt any property from taxation or from sale for taxes.
As added by P.L.1-1998, SEC.51.