In Indiana, there is a strict and limited exemption for the Cash that you can retain during bankruptcy. Indiana only allows $350 for this “Intangible” exemption for each filing party.
“Intangible” means what cannot be touched (such as referring to cash where you can only touch the paper it is printed on instead of the actual value of the item). This intangible bankruptcy exemption also applies to most financial accounts.
For instance, here’s two practical considerations for the Indiana Intangible Exemption:
1. Cash and Financial Accounts:
You must have less than $350 ($700 if a joint case) in cash when you file. This includes how much is in your bank accounts (or other financial account/cash investments). If you have more than this, it will be taken to pay your creditors. (This does not apply as strictly in Chapter 13, also some retirement accounts are fully exempt in and Indiana bankruptcy ).
2. Tax Refunds:
You may lose part or all of your tax refund. If you have a tax refund coming, part or all of the refund may be taken from you so that something can be paid back to your creditors. Before you file, you may be able to change your withholdings so that you will not receive a large tax refund. DO NOT SPEND YOUR REFUND if the trustee asks for it, or the discharge of your debts can be revoked.
These two practical considerations can help you understand how the “Intangible” exemption can be applied in an Indiana Bankruptcy.
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