The Means Test

• Before filing for Chapter 7 in Indiana, you must establish your eligibility by successfully passing a means test. The test is a measure of your median income for the previous six months. If you are an individual debtor, your median income may be no more than $40,683 according to Total Bankruptcy. The median income increases based on family size, and if your median income is greater than the established limit, you will have to file Chapter 13 instead.
  
  

Credit Counseling

• In addition to successfully passing the means test, you must complete a certified course in credit counseling. This must be through a federally approved credit-counseling agency and it must take place at least 180 days before submitting your petition. You must submit a statement demonstrating your successful completion of the course along with your bankruptcy filing.
  
  

Filing

• Where you file your bankruptcy petition depends on where you live. In Indiana, there are two federal bankruptcy courts in the Northern and Southern districts. You must file with the nearest court. When you file, there is a $299 filing fee. Indiana permits you to pay the fee over time. It also will waive fees in cases of financial hardship. When you file, you must submit a complete list of your debts and assets, along with creditor contact information.
  
  

Meeting of Creditors

• Approximately four to six weeks after filing your petition, the bankruptcy trustee will schedule a meeting of creditors. You are required to attend this meeting, but it is not mandatory for creditors. At this time, you will answer questions about your financial situation, including any assets you wish to exempt. In Indiana, you can claim a $15,000 homestead exemption, all life insurance policies and proceeds, 100 percent of retirement assets and up to $8,000 in personal property, according to Gouveia and Associates bankruptcy attorneys.
  
  

Discharge

• If no one raises new issues at the meeting of creditors, the court will typically discharge your bankruptcy petition within the next 60 days. Discharge erases your liability for any debts, and the trustee will seize and liquidate any assets you may have. Your Chapter 7 bankruptcy remains on your credit report up to 10 years from the date of discharge.