Indiana Garnishment Rules

What are Indiana's wage garnishment rules?

I work for an Indiana hospital and am in charge of wage garnishments. My question is can an employee have more than one wage garnishment as long as it does not go past 25% of their disposable earnings?

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  • Garnishment of SSI or pensions is not allowed under federal law.
  • Creditors are allowed to garnish 25% of your wages in Indiana.

Wage garnishment in Indiana is allowed under , and , and federal law .

A judgment-creditor may seek wage garnishment if it is aware of the debtor’s place of employment. Under Indiana and federal law, wage garnishment applies to 25% of the debtor’s net take home pay, (i.e., gross pay less statutorily mandated deductions). Indiana allows wage garnishment of up to 60% for child support, but limits that amount if the debtor is a head of household supporting others.

or pensions for consumer debt is not allowed under federal law.

The following remedies, found in Indiana , are allowed when a court awards a judgment to a creditor who filed a successful lawsuit against a consumer:

  • Attachment: IC 34-25-1 and IC 34-25-2
  • Wage Garnishment: IC 34-25-1 and IC 34-25-3
  • Lis pendens notice: IC 34-30-11

To learn more, see the Bills.com , which discusses the alternatives Indiana judgment-creditors have to wage garnishment.

Judgment Creditors Must Stand in Line to Obtain Wage Garnishment

Consult with your employer’s legal counsel regarding the application of Indiana and federal employment law. In general, creditors must stand in line when a wage garnishment hits the 25% ceiling. However, if the wage garnishment is administrative and relates to federal student loans, a child support order, or alimony, then the 25% limit does not apply. Again, each state’s laws vary, and an attorney with experience in Indiana’s labor law will give you precise advice.

I hope this information helps you Find. Learn & Save.

Best,

Bill

28 Comments

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  • WO
    Feb, 2013
    Wayne
    Can the state take more than 25% if all you have is social security income?
    0 Votes

    • BA
      Feb, 2013
      Bill
      It is not possible to answer your question without knowing more about the debt. Is it tax related? A child/family/spousal support garnishment? State-backed student loan? A state court-issued judgment?

      Social Security benefits are protected from some forms of garnishment, but open to others. See the Bills.com article Social Security Garnishment to learn the federal laws in place that protect Social Security benefit recipients.
      0 Votes

  • CF
    Oct, 2012
    Christine
    I'm an independent contractor, not an employee. Can my wages still be garnished?
    0 Votes

    • BA
      Oct, 2012
      Bill
      The answer to your question depends on your circumstances. See the 2007 Indiana Appeals Court decision Indiana Surgical Specialists v. Helen Griffin and MDS Courier Service, Inc. (PDF) for a discussion of this issue. Consult with an Indiana lawyer who has employment law experience to learn if your facts match those argued in the case cited, or if there are other Indiana cases that apply to you.
      0 Votes

  • DR
    Oct, 2012
    daniel
    How much can be garnished to pay a student loan?
    0 Votes

    • BA
      Oct, 2012
      Bill
      The answer to you question depends on your disposable income and whether your student loans are federal or private. See the Bills.com article Student Loan Wage Garnishment for an explanation. Take a moment to read some of the comments on that page, which go into depth about common student loan wage garnishment issues.
      0 Votes

  • MS
    Aug, 2012
    Michelle
    Can you be garnished in Indiana by more than one creditors at a time.
    0 Votes

    • BA
      Aug, 2012
      Bill
      I am not a lawyer, so I can't give you legal advice, but I will share a few thoughts with you.

      Regarding standard judgment-creditors, It is my understanding that two creditors can garnish your wages at the same time, as long as the total garnished is not greater than 25% of your gross pay less your statutorily mandated deductions.

      For other debts, such as IRS tax debts or child support, you can have more of your income garnished.
      0 Votes

  • NF
    Mar, 2012
    Noah
    I'm paid every two weeks, and my hours are different from week to week. I may work 40hours one week but only 22hours the next. I would have 62 hours on my pay check,for two weeks of work but they have to Garnish it weekly, correct?
    0 Votes

    • BA
      Mar, 2012
      Bill
      Consult with an Indiana lawyer who has employment law experience for a precise answer to your question. I read Indiana's law to mean that the amount garnished must be calculated based on the person's weekly wages. When the person is paid — weekly, every two weeks, or twice a month — is irrelevant. Therefore, the garnishment amount would vary as your hours worked vary.

      I hasten to add that I am not an Indiana employment lawyer, and my interpretation of Indiana's statute may be completely contrary to Indiana case law. Again, consult with an Indiana lawyer for a better guess.
      0 Votes