Does the Indiiana Chapter 7 "Wild-Card" exemption of $9,350 allow for any type of personal property be protected?

Asked over 2 years ago - Indianapolis, IN

The Indiana "Wild-Card" exemption for Chapter 7 Bankruptcy is $9,350. I need to know if that exemption can include any type of personal property, as long as the total value does not exceed $9,350. For example, I know you are definitely allowed to keep things like cars, furniture and clothing. But can you also keep things like collectibles as long as the total value of all personal property claimed including those collectibles does not exceed the $9,350 threshhold? Also, if you are allowed to keep collectibles as part of this exemption, do you have to list each and every indivfidual collectible item on the Chapter 7 exemption schedule, or could you list just a category such as "stamp collection" or "toy collection" and the current market value of that collection as a whole?

Attorney answers (5)

  1. Juan Antonio Perez Jr.

    Contributor Level 11

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    Answered . Actually, it is not really called a "wild card". It is the exemption for "other real estate and tangible personal property". In other words, you can use it for any non-homestead real estate and any tangible personal property. This would include collectibles.

    Indiana makes no judgment as to how a debtor should hold his or her property. We don't care if you want to have 12 beater cars and no couch. Or lots of couches and no cars.

    The more detail you provide on the schedules about things like collectibles, the easier the trustee's job. It also clarifies how you came up with the value of the collection.

    Attorney Jay Perez is a Managing Attorney with Macey Bankruptcy Law, a national consumer bankruptcy law firm. His... more
  2. Dana Lynn Luetzelschwab

    Contributor Level 8

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    Answered . Juan is definitely spot-on with his answer. One warning I give my clients about valuing their assets - trustees make money by finding undervalued assets. You have to be ready for the questions before the trustee's radar locks on to your petition. If a trustee sees the word "collection" in a bankruptcy schedule, I can almost guarantee that the trustee will ask for a full list and decription of everything in the collection, plus its value (and how you determined it) at the 341 meeting of creditors. So, be prepared: Provide the list (and even photos) to the trustee at (or even before) the 341 meeting, be sure the values on the list appear to be in line with the items in the collection, and verify that the total value agrees with the total on the schedule. Doing this will probably settle the matter. But, if there's a delay or a discrepancy, the trustee may think that you have undervalued other assets, and may take a closer look at everything in your petition and schedules, which could delay your discharge.

    I am only licensed in Indiana. The information provided is general information, and is not intended to be... more
  3. Eric Charles Lewis

    Contributor Level 18

    Answered . What I will add is that while the personal property exemption does cover a wide variety of personal property, it does not cover a coin collection, for example. That would be covered under the $350 exemption that applies to all depository accounts, CDs, cash, coins, and the like.

    Indiana law does NOT have a wildcard exemption. Rep. Ed DeLaney tried to introduce legislation last year that would have created a wildcard exemption provision, but it did not make it through the session. Urge your representative to reintroduce or otherwise support the bill.

    Advice on this forum is for informational purposes only and should never be mistaken as a substitute for legal... more
  4. Dorothy G Bunce

    Pro

    Contributor Level 20

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    Answered . It is called a "wild card" because just like in a poker game, the wild card can be applied to anything.

    Hope this perspective helps!

  5. James Portman Webster

    Pro

    Contributor Level 15

    Answered . In general, you list all of your assets. Then you exempt them on Schedule C.

    Get an attorney to ensure you are properly applying the wildcard.

    Jim Webster
    www.jpwlegal.com

    1845 S. Dobson Rd. Ste 201
    Mesa, AZ 85202

    (480) 464-4667
    Jim@jpwlegal.com

    We are a debt relief agency. We help people file for relief under the Bankruptcy Code.

    Please contact me directly with document for a free 30 minute consultation to get more concrete advice. This is... more

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