Should I File for Bankruptcy in Indiana? Frequently Asked Questions & Answers
by Attorney S. Zachary T. Brock

Table of Contents
Understanding Bankruptcy in Indiana
Deciding whether to file for bankruptcy in Indiana is a major financial decision that requires careful consideration. Bankruptcy laws exist to help individuals and businesses overwhelmed with debt find relief and a path to financial recovery. However, many people hesitate due to concerns about their assets, credit, and future financial stability.
To help you navigate this process, we’ve compiled a list of bankruptcy FAQs to address common concerns, clarify misconceptions, and provide clear guidance on how filing for bankruptcy in Indiana works. Whether you are dealing with credit card debt, medical bills, foreclosure, or wage garnishments, this guide will help you determine if bankruptcy is the right solution for your financial situation.
How Do I Know If I Should File for Bankruptcy in Indiana?
If you are struggling to pay your bills, facing constant calls from creditors, or at risk of losing your home or vehicle, it may be time to explore filing for bankruptcy in Indiana. Some signs that bankruptcy might be a good option include:
- You are using credit cards for basic necessities because you can’t afford them otherwise.
- Your wages are being garnished, leaving you with little income to cover essential expenses.
- You are behind on mortgage or car payments and facing foreclosure or repossession.
- You owe more in unsecured debts (like medical bills and credit cards) than you could realistically pay back in five years.
- You have tried credit counseling or debt settlement, but your debt continues to grow.
What Are the Different Types of Bankruptcy Available in Indiana?
There are two primary types of consumer bankruptcy:
Chapter 7 Bankruptcy (Liquidation Bankruptcy)
- Eliminates most unsecured debts, such as credit card balances, medical bills, and personal loans.
- Requires passing a means test to determine eligibility based on income.
- Allows certain exempt assets to be protected while non-exempt assets may be sold to repay creditors.
- Typically completed within 4-6 months.
Chapter 13 Bankruptcy (Repayment Plan Bankruptcy)
- Designed for individuals with regular income who want to restructure debt into a manageable repayment plan.
- Allows you to catch up on past-due mortgage or car payments while keeping your property.
- Debts are repaid over a 3-5 year plan, with remaining eligible balances potentially discharged at the end.
- Stops foreclosure and wage garnishments while providing a structured plan to repay creditors.

Will Bankruptcy Wipe Out All My Debts?
Not all debts are dischargeable. Filing for bankruptcy in Indiana can eliminate many unsecured debts, but certain obligations must still be paid. Here’s a breakdown:
Debts That Can Be Discharged:
✔️ Credit card debt
✔️ Medical bills
✔️ Personal loans
✔️ Certain utility bills
✔️ Payday loans
Debts That Usually Cannot Be Discharged:
❌ Student loans (unless extreme hardship is proven)
❌ Most tax debts (though some may be dischargeable in Chapter 13)
❌ Child support and alimony obligations
❌ Criminal fines and court-ordered restitution
❌ Most secured debts unless you surrender the collateral
Will I Lose My Home or Car If I File for Bankruptcy?
It depends on the type of bankruptcy you file and the Indiana bankruptcy exemptions that apply.
- Chapter 7 Bankruptcy: If you are behind on car or mortgage payments, the lender can still foreclose or repossess the asset if you don’t catch up. However, if you are current on payments and your home or car falls under Indiana’s homestead and vehicle exemptions, you can keep them.
- Chapter 13 Bankruptcy: This allows you to prevent foreclosure by catching up on missed mortgage payments through a structured repayment plan.
Indiana allows certain exemptions that protect equity in your home, car, and other personal property. Consulting a bankruptcy attorney near me can help determine how much of your property is protected.
How Will Bankruptcy Affect My Credit Score?
Filing for bankruptcy will impact your credit score, but for many, the effect is not as severe as they fear.
- Chapter 7 stays on your credit report for 10 years, while Chapter 13 remains for 7 years.
- If you already have late payments, collections, or maxed-out credit cards, bankruptcy may not significantly lower your score because it reflects existing financial struggles.
Many people start rebuilding credit within a year by making timely payments on secured credit cards, installment loans, or other responsible financial behavior.
What Are the Benefits of Filing for Bankruptcy?
Filing for bankruptcy provides immediate relief from creditors and can help you regain control of your financial future. Some of the key benefits include:
- Stops creditor harassment – No more collection calls, letters, or threats.
- Halts wage garnishment – Protects your income from further deductions.
- Prevents foreclosure or repossession – Offers options to save your home or car.
- Eliminates overwhelming debt – Discharges unsecured debts to give you a fresh start.
- Provides a clear repayment structure – Chapter 13 allows manageable payments on remaining debts.
How Long Does the Bankruptcy Process Take?
- Chapter 7 bankruptcy typically takes 4-6 months from filing to discharge.
- Chapter 13 bankruptcy requires 3-5 years to complete, depending on the repayment plan duration.
Your case may take longer if creditors object, if additional documentation is needed, or if you fail to complete mandatory financial counseling courses.
What Steps Should I Take Before Filing for Bankruptcy?
Before filing, consider these steps:
1️Assess Your Financial Situation – Review your income, expenses, and debts to determine if bankruptcy is the right solution.
2️Explore Alternatives – Debt consolidation, negotiation, or a debt management plan may be options before filing.
3️Consult a Bankruptcy Attorney – A bankruptcy attorney in Bloomington IN can evaluate your case and recommend the best approach.
4️Complete Credit Counseling – Indiana requires credit counseling from an approved agency before filing.
5️Prepare Documentation – Gather pay stubs, tax returns, bank statements, and a list of debts and assets.
How Do I Start the Bankruptcy Process?
If you’re considering when to file for bankruptcy in Indiana, the best way to get started is to consult with an experienced attorney. At Brock Legal LLC, we provide:
✔️ A detailed evaluation of your financial situation.
✔️ Guidance on whether Chapter 7 or Chapter 13 is best for you.
✔️ Representation throughout the bankruptcy filing process.
✔️ A strategy to help you rebuild your financial future.
Contact us today to schedule a consultation and take the first step toward financial relief.
Conclusion
Deciding whether to file for bankruptcy in Indiana can feel overwhelming, but understanding your options makes it easier. Whether you need debt relief, a repayment plan, or legal protection against creditors, knowing the facts is key to making an informed decision. If you’re struggling with debt, reach out to Brock Legal LLC to discuss your situation and determine the best path forward.

Need Help With Bankruptcy? Contact Brock Legal LLC Today!
If you’re facing financial hardship and wondering when to file for bankruptcy in Indiana, don’t wait until creditors take further action. Schedule a free consultation with Brock Legal LLC to discuss your options.
📞 Call: (317) 203-9098
🌐 Visit: indyfinancelaw.com
Attorney S. Zachary T. Brock

Attorney S. Zachary T. Brock
Zach empowers individuals faced with financial challenges by providing them with effective solutions and unwavering support in the areas of consumer finance and bankruptcy law.
By actively listening and empathizing with each client, Zach works to gain a deep understanding of every individual or family’s unique circumstances. This helps him tailor his legal strategy to best meet the needs of each client.
“No matter what may be weighing you down financially, Brock Legal is here to help. My mission is to help navigate you through whatever stressful circumstance you may be faced with, by offering unparalleled education and service in the areas of consumer finance and bankruptcy law. Let us show you how our firm can help. Contact Brock Legal today!”
-Zach