Ask Bill your personal finance question

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?

Read full question
Bill's Answer
4.5
/5.0
(14 Votes)

Updated: Oct 23, 2014

Indiana Garnishment Rules
Highlights

  • 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

46 Comments

Recent Best
1500 characters remaining
  • JH
    May, 2014
    judith
    I was never notified of my garnishment. I was being garnished by Ford Motor Company. My balance with them was $2,276. I was fired from previous job. Contacted Ford and told them of my job loss. Got a new job and was back to work for 4 months. Now they are back to garnishing me. I use to get a notice in mail of balance, with court order paper. Now I don't receive anything. Is my employer responsible for getting me the notice of garnishment or is Ford Motor Company?
    0 Votes

    • BA
      Jun, 2014
      Bill
      I cannot find a civil procedure rule in Indiana law that requires either the employer or the judgment-creditor to give you notice before a garnishment begins. However, in Indiana's Civil Procedure Rule 4 and Rule 5, a detailed procedure must be followed before a wage garnishment can be ordered.

      Consult with an Indiana lawyer who has consumer law experience for a better answer than the one provided here. If you cannot afford a lawyer, contact Indiana Legal Services or another Indiana pro bono program for no-cost or low-cost legal advice.
      0 Votes

  • KH
    Apr, 2014
    Kevin
    Can I have a wage garnishment reduced from 25% to 10%?
    0 Votes

    • BA
      Apr, 2014
      Bill
      Some states allow a judgment-debtor to request a hearing to reduce the amount of a wage garnishment. Consult with a lawyer who has consumer or employment law experience to learn if Indiana will allow you to petition to modify your garnishment. If you are an Indiana resident and cannot afford a lawyer, contact Indiana Legal Services or another Indiana pro bono program to learn more about no-cost legal services in your area.
      0 Votes

  • DM
    Mar, 2014
    Donna
    Can I be garnished for a loan that was clearly stated in divorce decree that I am not responsible for this debt? How can I remove this garnishment?
    0 Votes

    • BA
      Mar, 2014
      Bill
      Yes, you can be garnished for a debt that your divorce decree said was the responsibility of your ex to pay. The creditor is not bound by the terms of our divorce decree. If you are financially responsible for a debt to a creditor that goes delinquent, then you can suffer all collection efforts. You may have a cause to take action against your ex, for not adhering to the terms of the decree. Check with your divorce lawyer.
      0 Votes

  • MF
    Feb, 2014
    Mary
    Can long term disability be garnished in Indiana? My husband receives long term disability and a judgement creditor (credit card company) sent a garnishment order to his former employer. I thought those assets were exempt.
    0 Votes

    • BA
      Feb, 2014
      Bill
      Take these two steps:
      1. Read Indiana Code section 24-4.5-5-105 (1) (a), which defines what Indiana courts allow judgment-creditors to garnish. My interpretation of the plain language in the statute tells me the Indiana legislature intended courts to allow garnishment of wages, and not insurance benefits.
      2. Consult with an Indiana lawyer who has consumer law experience to learn if my interpretation is collect.

      If you cannot afford a lawyer, contact Indiana Legal Services or another Indiana pro bono program for no-cost legal assistance.

      0 Votes

  • AR
    Dec, 2013
    Amanda
    can a realiter garnish a person when the case has been closed and how long can they take from a paycheck
    0 Votes

    • BA
      Dec, 2013
      Bill
      I don't know what you mean when you say the case has been closed. A retailer could not garnish a person's income without first suing and obtaining a judgment against him or her. How long a judgment stays in effect is based on the collection laws of the state that has jurisdiction. If a judgment were entered, it is certainly possible that a wage garnishment would stay in effect until the debt was paid off.
      0 Votes