What is Residency Requirement for Homestead Exemption in Indiana?

[Indynwi]

I'm new here so not sure if I'm in the right place but I live in nw Indiana.
We are getting ready to file bk soon.
We cannot afford to live in this home any longer.
It is mortgaged with no equity and lost 30% of it's value due to the economy.
Our business closed and we tapped all savings and credit cards and have not been able to open a successful business or find gainful employment.
We have a previous home that has no mortgage. We used to live there about 4 years ago.
We owe about $15k in property tax there.
We plan to move back to our previous home that is being rented now.
The tenants lease is up next month and they will be leaving.
We know that we will probably lose this previous home because the equity will be used to pay our debts in the bk and there is no equity in this home we are in now.
We'd like to use our previous home for the homestead exemption.
Does anyone know how long we have to live there to claim it as our primary
residence?
Our lawyer thought 30 days. (he is checking but i thought someone here might know).
And also what constitutes residence?
He said that we would be under oath that we moved and that's all we need.
We will switch our utilities and get mail there but is there anything else we should do to show we live there?
I couldn't find anything in the bk law on the state website.
Our niece may stay in our current home but not sure. Can we leave it vacant?
Any advice, suggestions, etc. are welcomed.
Thanks!

[tobee43]

This is the most current info i have....someone else may chime in ...if there is anything more current....best of luck you!

State Residency Requirements for the Homestead Exemption

"Prior to the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), many people would, before filing for bankruptcy, move to another state that had a more generous homestead exemption than the one they were living in. The new law has much stricter requirements as to which state’s home exemption you can use. However, if you live in a state that allows the choice of federal exemptions, then you can choose the federal exemptions regardless of how long you were living in the state.

If you have lived in your home for at least 40 months before filing, or if you have lived in your home for less than 40 months, but purchased it after selling another home in the same state that you lived in more than 40 months earlier, then you can use your current state’s exemption. However, if you have been convicted of a felony, a securities violation, or an intentional tort that caused severe bodily injury or death, then your homestead exemption may be limited to $125,000. If your state’s exemption is greater than this, then the judge will determine whether to apply the limit.

If you acquired your home within the previous 40 months and have lived in the state for at least 2 years, then you can use that state’s exemption up to $125,000.

If you have lived in your state for less than 2 years, then you must use the exemptions of the state—up to $125,000—in which you lived the longest in the 180 period before the 2 years before filing—in other words, in the time period of about 2 to 2 ½ years before filing for bankruptcy.

If you have disposed of any nonexempt assets in the 10 years before filing to protect it from creditors, then your exemption may be reduced by the value of those assets."


also this site may help you a bit...http://www.legalconsumer.com/bankrup...-law.php?ST=IN

[Indynwi]

This is helpful and makes me think my situation is unique since we have lived in the state over the time period- But we are moving back to a previous residence IN THE SAME STATE (in the next town in Indiana) anyway and want to use that for the exemption of $17,600 per person when we file bk. I was just concerned if they wouldn't recognize that home we're moving back into. My attorney said it's only 30 days.

Also, what proof would I need to show for proof of residency? We already have utility bills coming there. Pay the taxes (or try to). etc.


Thanks again!

{What is Residency Requirement for Homestead Exemption in Indiana?
I'm new here so not sure if I'm in the right place but I live in nw Indiana.
We are getting ready to file bk soon.
We cannot afford to live in this home any longer.
It is mortgaged with no equity and lost 30% of it's value due to the economy.
Our business closed and we tapped all savings and credit cards and have not been able to open a successful business or find gainful employment.
We have a previous home that has no mortgage. We used to live there about 4 years ago.
We owe about $15k in property tax there.
We plan to move back to our previous home that is being rented now.
The tenants lease is up next month and they will be leaving.
We know that we will probably lose this previous home because the equity will be used to pay our debts in the bk and there is no equity in this home we are in now.
We'd like to use our previous home for the homestead exemption.
Does anyone know how long we have to live there to claim it as our primary
residence?
Our lawyer thought 30 days. (he is checking but i thought someone here might know).
And also what constitutes residence?
He said that we would be under oath that we moved and that's all we need.
We will switch our utilities and get mail there but is there anything else we should do to show we live there?
I couldn't find anything in the bk law on the state website.
Our niece may stay in our current home but not sure. Can we leave it vacant?
Any advice, suggestions, etc. are welcomed.
Thanks! }

[QUOTE=tobee43;502995]This is the most current info i have....someone else may chime in ...if there is anything more current....best of luck you!

State Residency Requirements for the Homestead Exemption

"Prior to the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), many people would, before filing for bankruptcy, move to another state that had a more generous homestead exemption than the one they were living in. The new law has much stricter requirements as to which state’s home exemption you can use. However, if you live in a state that allows the choice of federal exemptions, then you can choose the federal exemptions regardless of how long you were living in the state.

If you have lived in your home for at least 40 months before filing, or if you have lived in your home for less than 40 months, but purchased it after selling another home in the same state that you lived in more than 40 months earlier, then you can use your current state’s exemption. However, if you have been convicted of a felony, a securities violation, or an intentional tort that caused severe bodily injury or death, then your homestead exemption may be limited to $125,000. If your state’s exemption is greater than this, then the judge will determine whether to apply the limit.

If you acquired your home within the previous 40 months and have lived in the state for at least 2 years, then you can use that state’s exemption up to $125,000.

If you have lived in your state for less than 2 years, then you must use the exemptions of the state—up to $125,000—in which you lived the longest in the 180 period before the 2 years before filing—in other words, in the time period of about 2 to 2 ½ years before filing for bankruptcy.

If you have disposed of any nonexempt assets in the 10 years before filing to protect it from creditors, then your exemption may be reduced by the value of those assets."

[tobee43]

i would think if you are still residiing in the SAME state....why would you even think you were have a problem....the residency issue is more designed for those moving state to state...or at least that is how i understand it.

many people move place to place...apt.. .to apt....in the same state...shoot...i knew someone that moved 4 times in 1.5 years...so i'm not thinking since you have lived in the same but moved it matters much.

[momofthree]

Just wanted to ditto Tobee to lend some credence to what she's saying. You shouldn't have any issues since you've been residing in the same state. If your attorney says 30 days, then 30 days should be fine. Just make sure that all the utilities are switched into your name before you file.

[tobee43]

Just wanted to ditto Tobee to lend some credence to what she's saying. You shouldn't have any issues since you've been residing in the same state. If your attorney says 30 days, then 30 days should be fine. Just make sure that all the utilities are switched into your name before you file.

thanks....and i would think so...after all i don't think an "address" change in the same state is what the spirit of the law is meaning.

[Indynwi]

Thanks to all who are helping with my Q - I'll let you know if I find out something else.

[debtfreeindy]

Indiana's homestead exemption is available to those who maintain domicile in Indiana. Domicile on the other hand does not have a specific timeframe - it is shown by intent and actions. If you have a house, pay property taxes, register your vehicle there, register to vote, etcetera, then you have established domicile in the state and that doesn't change until your actions show a different intent to establish domicile elsewhere.

[Indynwi]

I believe this is the federal exemption. And I read that Indiana doesn't recognize the federal exemption so I guess I just get the regular Homestead exemption which thankfully was raised to $15,600 and another for spouse if filing jointly. I was hoping to get the $125,000 so I could keep the home from being used to pay creditors. Oh well


<<<If you have lived in your state for less than 2 years, then you must use the exemptions of the state—up to $125,000—in which you lived the longest in the 180 period before the 2 years before filing—in other words, in the time period of about 2 to 2 ½ years before filing for bankruptcy.>>>

[debtfreeindy]

I guess I just get the regular Homestead exemption which thankfully was raised to $15,600 and another for spouse if filing jointly.

Actually, Indiana's homestead exemption is now $17,600 per filer.

[Indynwi]

Yes you're right! I don't know where I got that figure

Thanks!

[Indynwi]

Thanks - that's what I wanted to know. Not sure if I will register to vote, I get mail and utilities already, I can register my vehicle, I hate to change too much because I will lose this property in the bk and I hate to have to change everything all over again when I move. (like driver's license) Do you know what's the minimum I should do? I don't want to do anything that will jeopardize the bk.

Indiana's homestead exemption is available to those who maintain domicile in Indiana. Domicile on the other hand does not have a specific timeframe - it is shown by intent and actions. If you have a house, pay property taxes, register your vehicle there, register to vote, etcetera, then you have established domicile in the state and that doesn't change until your actions show a different intent to establish domicile elsewhere.

[Indynwi]

I hope you can help me with this q -
The property that I will lose in the BK is one I am behind on property taxes. There is no mortgage on it. It will be sold to pay creditors. We received a demand for payment by the end of March from the Property Tax Collector. When I called that office, I spoke to the attorney and explained that we are filing bk, he said to just follow what my BK attorney says to do. He didn't ask for the bk Record # or anything else and I thought - hope he isn't thinking "heh, heh, heh, I'll get this bldg. soon"

My bk attorney's rep said not to worry that we won't lose the exemption on the house of $35k. But I have read cases where clients are told things in BK and then lose their house (which we are ok with anyway). I just don't want to lose the exemption. Any help on this? Thanks!

[Indynwi]

update, we will be completing the filing of our BK next week. We haven't lost the property to a tax sale and we shall see how the Homestead exemption goes.
Thanks to all who wrote!

I hope you can help me with this q -
The property that I will lose in the BK is one I am behind on property taxes. There is no mortgage on it. It will be sold to pay creditors. We received a demand for payment by the end of March from the Property Tax Collector. When I called that office, I spoke to the attorney and explained that we are filing bk, he said to just follow what my BK attorney says to do. He didn't ask for the bk Record # or anything else and I thought - hope he isn't thinking "heh, heh, heh, I'll get this bldg. soon"

My bk attorney's rep said not to worry that we won't lose the exemption on the house of $35k. But I have read cases where clients are told things in BK and then lose their house (which we are ok with anyway). I just don't want to lose the exemption. Any help on this? Thanks!