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Indiana Garnishment Rules

Indiana Garnishment Rules
Mark Cappel
UpdatedDec 5, 2022
Key Takeaways:
  • Garnishment of SSI or pensions is not allowed under federal law.
  • Creditors are allowed to garnish 25% of your wages in Indiana.
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?

Wage garnishment in Indiana is allowed under Indiana Code Title 34, Article 25, Chapter 3: Garnishment, and IC 24-4.5-5-105, and federal law 15 U.S.C. 1673(a).

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.

Garnishment of Social Security benefits or pensions for consumer debt is not allowed under federal law.

The following remedies, found in Indiana Indiana Code Title 34 Article 25, 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 Indiana Collection Laws page, 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

Bills.com

Debt statistics

If you are struggling with debt, you are not alone. According to the NY Federal Reserve total household debt as of Quarter Q2 2022 was $16.15 trillion. Student loan debt was $1.59 trillion and credit card debt was $0.89 trillion.

A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.

Collection and delinquency rates vary by state. For example, in Colorado, 17% have student loan debt. Of those holding student loan debt, 7% are in default. Auto/retail loan delinquency rate is 3%.

To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.

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10 Comments

BBarb, Jan, 2021

Is there a limit.. on what you can earn per week that cannot be garnished.. for example just having a part-time job earning $100 a week can they still garnish that?

JJoshua Abreu-Rosa, Aug, 2021

Hello Barb. 

Thank you for reaching out. Please, do not take my answer to be legal advice as I am not an attorney. Only attorneys can offer legal advice. 

According to this article, it appears that residents of Indiana can be garnished up to 25%. 
If you live in another state or have further inquiries regarding your rights, I recommend speaking with an attorney. 

Regards, Josh 

MMarsha Lloyd, Sep, 2020

I just received a judgment order, in my favor form the courts. How do I request garnishment from the other parties employer? Yes, I do know where she works and the total amount is $252.98

BBetsalel Cohen, Sep, 2020

The procedure and paperwork differ by county. I suggest that you speak to a representative of your local court. They should be able to provide you with guidance regarding the proper forms to follow.

If not, then seek assistance from a free local legal aid service.

CCrystal, Jun, 2020

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

DDaniel Cohen, 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.

SShonda, 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.

DDaniel Cohen, 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.

EEric, 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.

DDaniel Cohen, Jul, 2020

I am sorry to read what is happening, Eric.