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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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Indiana Garnishment Rules
IN THIS ARTICLE:
  • 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

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  • C
    Crystal,
    Jun, 2020

    I have 2 garnishments set at 10% each. I got a second job. Can they take from that job also?

    • 35x35
      Daniel,
      Jun, 2020

      I am not a lawyer, Crystal, so my answer is what I believe to be true, but you should not consider it legal advice.

      Yes, they can take from your second job, though the garnishments are limited to a percentage of your income. However, if a creditor is getting money from one job, it may not know right away about your second job.

  • S
    Shonda,
    Jun, 2020

    Im being Garnished for some bank account from 2007 that I have no idea about if you do the math I would be 16 or 17 back in 2007. Im 30 years of age. Is there anything I can do about this? I never recieved a letter at my current address of 8 years about this.

    • 35x35
      Daniel,
      Jul, 2020

      Shonda, one route to contact an attorney to review the facts of the case. If your paycheck is being garnished then you were sued and a judgment obtained against you, though you were never notified. It can be difficult to challenge the judgment but  not impossible.

  • E
    Eric,
    May, 2020

    My wages were garnished for 20 months from April 2004 til Jan 2006. $125 a wk. For an auto loan a let lapse. I owed around $7000. Problem is my employer who withheld the garnishment only sent a couple partial payments to the company and they are no longervin business. So march of 2019 my wages are being garnished again for the same loan only its now $13,500 they are garnishing because of interest. I've already paid damn near $12000 back this time plus the $7000 from 2006 so $19000 for a $6000 loan I've been forced to pay to Heratige Acceptance Group for. They are by far a selfish Anti American greedy bad business ethics company who will rape you and not even consider talking with you about over charging you. They are pathetic. If my employer was court ordered and withheld the money am i still responsible for the debt being as i paid the $7000? It was taken from my check i have no control over my employer sending it to the company.

    • 35x35
      Daniel,
      Jul, 2020

      I am sorry to read what is happening, Eric.

  • E
    Ellen Wilkinson,
    Mar, 2020

    Can I negotiate the 25% in court?

    • 35x35
      Daniel,
      Mar, 2020

      Ellen, the amount of money taken in a garnishment is not subject to negotiation. For consumer debt, the amount is set by state and federal law. Federal law allows a 25% maximum. States can set their own limits, from not allowing wage garnishment to applying the same 25% standards as the feds. They can also set it for any amount in between.

      Not all income is subject to garnishment for consumer debt. Social Security, Disability, and some pension income is protected. How much you earn is important, too. Calculating how much will be garnished starts with your "disposable income," which is what is left in your paycheck after legally required deductions are made, such as federal, state, and local taxes, and your share of Social Security, Medicare and State Unemployment Insurance tax. It also includes withholdings for employee retirement systems required by law."

      Disposable income up to $217.50 is protected. Anything between $217.50/week and $290/week is taken, and anything over $290/week is subject to 25%. See this chart for figures calculated for other pay periods and shows examples. Disposable income is what you are left with after legally required deductions are taken, such as federal, state, and local taxes; Social Security; Medicare; State Unemployment Insurance tax, and retirement contributions that are required by law.

      Filing for bankruptcy would stop all garnishments. In a Chapter 13, if the court recognized that your allowable expenses leaves you with less to give the creditor than what would come in a garnishment, the court would order you to pay less. If you qualified for a Chapter 7, you could wipe out the debt.

  • M
    Michelle M,
    Mar, 2020

    I'm being garnished for an apartment from 22 years ago. Is that legal?

    • 35x35
      Daniel,
      Mar, 2020

      A garnishment is a result of a judgment that was issued against you. A court has to order the judgment, so the judgment was done through the legal process. 

      In your case, it depends when the judgment was ordered. If renewed properly, a judgment can remain enforceable for 20 years. It is possible, therefore, that the garnishment is proper.

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