2014 Indiana Code TITLE 34. CIVIL LAW AND PROCEDURE ARTICLE 55. EXECUTION OF JUDGMENTS CHAPTER 10. SALES AND EXECUTION OF REAL ESTATE: EXEMPTIONS
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IC 34-55-10
Chapter 10. Sales and Execution of Real Estate: Exemptions
IC 34-55-10-0.2
Application of certain amendments to prior law
Sec. 0.2. (a) The amendments made to IC 34-2-28 (before its
repeal, now codified in this chapter) by P.L.182-1986 do not apply
to causes of action in tort that accrue before September 1, 1986.
(b) The amendments made to IC 34-2-28-1 (before its repeal, now
codified at section 2 of this chapter) by P.L.290-1989 apply to
judgments obtained after June 30, 1989.
As added by P.L.220-2011, SEC.581.
IC 34-55-10-1
Bankruptcy exemptions
Sec. 1. In accordance with Section 522(b) of the Bankruptcy Code
of 1978 (11 U.S.C. 522(b)), in any bankruptcy proceeding, an
individual debtor domiciled in Indiana is not entitled to the federal
exemptions as provided by Section 522(d) of the Bankruptcy Code
of 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
Bankruptcy exemptions; limitations
Sec. 2. (a) This section does not apply to judgments obtained
before October 1, 1977.
(b) The amount of each exemption under subsection (c) applies
until a rule is adopted by the department of financial institutions
under section 2.5 of this chapter.
(c) The following property of a debtor domiciled in Indiana is
exempt:
(1) Real estate or personal property constituting the personal or
family residence of the debtor or a dependent of the debtor, or
estates or rights in that real estate or personal property, of not
more than fifteen thousand dollars ($15,000). The exemption
under this subdivision is individually available to joint debtors
concerning property held by them as tenants by the entireties.
(2) Other real estate or tangible personal property of eight
thousand dollars ($8,000).
(3) Intangible personal property, including choses in action,
deposit accounts, and cash (but excluding debts owing and
income owing), of three hundred dollars ($300).
(4) Professionally prescribed health aids for the debtor or a
dependent of the debtor.
(5) Any interest that the debtor has in real estate held as a tenant
by the entireties. The exemption under this subdivision does not
apply to a debt for which the debtor and the debtor's spouse are
jointly liable.
(6) An interest, whether vested or not, that the debtor has in a
retirement plan or fund to the extent of:
(A) contributions, or portions of contributions, that were
made to the retirement plan or fund by or on behalf of the
debtor or the debtor's spouse:
(i) which were not subject to federal income taxation to the
debtor at the time of the contribution; or
(ii) which are made to an individual retirement account in
the manner prescribed by Section 408A of the Internal
Revenue Code of 1986;
(B) earnings on contributions made under clause (A) that are
not subject to federal income taxation at the time of the levy;
and
(C) roll-overs of contributions made under clause (A) that are
not subject to federal income taxation at the time of the levy.
(7) Money that is in a medical care savings account established
under IC 6-8-11.
(8) Money that is in a health savings account established under
Section 223 of the Internal Revenue Code of 1986.
(9) Any interest the debtor has in a qualified tuition program, as
defined in Section 529(b) of the Internal Revenue Code of 1986,
but only to the extent funds in the program are not attributable
to:
(A) excess contributions, as described in Section 529(b)(6)
of the Internal Revenue Code of 1986, and earnings on the
excess contributions;
(B) contributions made by the debtor within one (1) year
before the date of the levy or the date a bankruptcy petition
is filed by or against the debtor, and earnings on the
contributions; or
(C) the excess over five thousand dollars ($5,000) of
aggregate contributions made by the debtor for all programs
under this subdivision and education savings accounts under
subdivision (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 filed
by or against the debtor, and earnings on the aggregate
contributions.
(10) Any interest the debtor has in an education savings
account, as defined in Section 530(b) of the Internal Revenue
Code of 1986, but only to the extent funds in the account are not
attributable to:
(A) excess contributions, as described in Section 4973(e) of
the Internal Revenue Code of 1986, and earnings on the
excess contributions;
(B) contributions made by the debtor within one (1) year
before the date of the levy or the date a bankruptcy petition
is filed by or against the debtor, and earnings on the
contributions; or
(C) the excess over five thousand dollars ($5,000) of
aggregate contributions made by the debtor for all accounts
under this subdivision and qualified tuition programs under
subdivision (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 filed
by or against the debtor, and earnings on the excess
contributions.
(11) The debtor's interest in a refund or a credit received or to be
received under the following:
(A) Section 32 of the Internal Revenue Code of 1986 (the
federal earned income tax credit).
(B) IC 6-3.1-21-6 (the Indiana earned income tax credit).
(12) A disability benefit awarded to a veteran for a service
connected disability under 38 U.S.C. 1101 et seq. This
subdivision does not apply to a service connected disability
benefit that is subject to child and spousal support enforcement
under 42 U.S.C. 659(h)(1)(A)(ii)(V).
(13) Compensation distributed from the supplemental state fair
relief fund under IC 34-13-8 to an eligible person (as defined in
IC 34-13-8-1) for an occurrence (as defined in IC 34-13-8-2).
This subdivision applies even if a debtor is not domiciled in
Indiana.
(d) A bankruptcy proceeding that results in the ownership by the
bankruptcy estate of a debtor's interest in property held in a tenancy
by the entireties does not result in a severance of the tenancy by the
entireties.
(e) Real estate or personal property upon which a debtor has
voluntarily granted a lien is not, to the extent of the balance due on
the debt secured by the lien:
(1) subject to this chapter; or
(2) exempt from levy or sale on execution or any other final
process 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; P.L.53-2010,
SEC.1; P.L.42-2011, SEC.73; P.L.160-2012, SEC.65.
IC 34-55-10-2.5
Exemption amounts; adoption of rules
Sec. 2.5. (a) The department of financial institutions shall adopt a
rule under IC 4-22-2 establishing the amount for each exemption
under section 2(c)(1) through 2(c)(3) of this chapter to take effect not
earlier than January 1, 2010, and not later than March 1, 2010.
(b) The department of financial institutions shall adopt a rule
under IC 4-22-2 establishing new amounts for each exemption under
section 2(c)(1) through 2(c)(3) of this chapter every six (6) years after
exemption amounts are established under subsection (a). The rule
establishing new exemption amounts under this subsection must take
effect not earlier than January 1 and not later than March 1 of the
sixth calendar year immediately following the most recent
adjustments to the exemption amounts.
(c) The department of financial institutions shall determine the
amount of each exemption under subsections (a) and (b) based on
changes in the Consumer Price Index for All Urban Consumers,
published by the United States Department of Labor, for the most
recent six (6) year period.
(d) The department of financial institutions shall round the amount
of an exemption determined under subsections (a) and (b) to the
nearest fifty dollars ($50).
(e) A rule establishing amounts for exemptions under this section
may not reduce an exemption amount below the exemption amount
on July 1, 2005.
(f) The department of financial institutions may adopt a rule under
subsection (a) or subsection (b) as an emergency rule under
IC 4-22-2-37.1.
(g) An emergency rule adopted by the department of financial
institutions under this section expires on the earlier of the following
dates:
(1) The expiration date stated in the emergency rule.
(2) The date the emergency rule is amended or repealed by a
later rule adopted under IC 4-22-2-24 through IC 4-22-2-36 or
under IC 4-22-2-37.1.
As added by P.L.179-2005, SEC.11. Amended by P.L.140-2013,
SEC.21.
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 this
chapter, two (2) appraisers shall be chosen, one (1) by the plaintiff or
the plaintiff's agent or attorney, and one (1) by the debtor. These two
(2), in case of disagreement, shall select a third. If either party fails
to select an appraiser, one (1) shall be selected by the officer holding
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 and
personal property selected by the debtor, describing the real estate by
metes and bounds, and the personal property by separate items,
affixing to each the value they agree upon. The appraisers, or a
majority, shall affix to the schedule an affidavit in substance as
follows: "We, the undersigned, swear that, in our opinion, the
property 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 subsequent
appraisals
Sec. 6. The schedule of real and personal property shall be
delivered to the officer holding the execution or other process. The
officer shall return the schedule with the execution or other process
and make the schedule a part of the return. However, all second or
subsequent appraisals under this chapter are at the cost of the party
or parties asking for the reappraisal, unless the property of the debtor
at the time of the reappraisal is appraised at enough over and above
the 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 personal
property only, the officer holding the execution shall cause the
property to be appraised and set apart to the debtor, and shall proceed
to sell such other property, if any, that is subject to execution
according 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 which
an exemption is claimed exceeds the amount of the exemption, the
property may be sold. However, the debtor must be paid an amount
equal to the debtor's exemption in the property from the proceeds of
the sale.
(b) In making the sale under subsection (a), the officer may not
accept a bid unless the bid exceeds the exempt value of the property.
If indebtedness secured by a valid lien is chargeable against the
proceeds of the sale, a bid may not be accepted if the bid is less than
the sum of the amount of the indebtedness secured by the lien and the
exempt 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 of
homestead
Sec. 11. In all cases in which real property is claimed as exempt
from sale on execution, if the real property is susceptible of division
by metes and bounds without material injury, the real property shall
be divided to exempt the principal dwelling house or homestead of
the 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 exemption
provided by this chapter, the debtor shall deliver to the officer
holding 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 from
Indiana, or is absent himself or herself from home, and an attachment
or execution is directed against the execution defendant's property,
the spouse may:
(1) make out and verify the schedule of the absent spouse's
property, and claim and receive for the absent spouse the
exemption provided in this chapter; and
(2) claim and exercise all the rights that would belong to the
absent 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 the
purchase 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.
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