Legal Question in Bankruptcy in Indiana

Excluding Certain Debt

I am married but want to file by myself. Currently all debt is in my name because of my husband's credit. I want to file however I currently have (2) leased vehicles (one for me and one for my husband) and a bass fishing boat that I just purchased within the last 30 days. I do NOT want to file on either vehicle or the boat..I want to keep those items. I don't want the bankruptcy to put those (3) items in jeporady. Can I keep those items and still file?


Asked on 7/17/01, 2:32 pm

1 Answer from Attorneys
Dorene Philpot Philpot Law Office

Re: Excluding Certain Debt

In Indiana, one spouse can file for bankruptcy alone, but the judge will ask you why because usually people do it together.

Yes, you can elect to keep certain things and reaffirm on certain debts, as long as your income is sufficient to pay for those things, and as long as you have only $4,000 in equity (or less) in all those things.

If you own the bass boat free and clear, then that could be subject to seizure. The leased vehicles probably have NO equity, so you're probably fine on those.

How much home equity do you have? You're allowed to keep $7,500 in equity in a home.

And because you just bought the boat, I'd wait another 60 days before filing....

Hope this helps. Let me know if you have other questions.

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Answered on 7/18/01, 8:18 am


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