Bills Logo

Indiana Garnishment Rules

Indiana Garnishment Rules

Get rid of your debt faster with debt relief

Choose your debt amount

$25,000
$1,000$100,000+
See if you qualify

Or speak to a debt consultant  844-731-0836

Mark Cappel
UpdatedMay 10, 2024
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

Dealing with debt

Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q4 2023 was $17.503 trillion. Housing debt totaled $12.612 trillion and non-housing debt was $4.891 trillion.

According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

Collection and delinquency rates vary by state. For example, in Wisconsin, 16% have student loan debt. Of those holding student loan debt, 6% are in default. Auto/retail loan delinquency rate is 3%.

Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.

SHOW SOURCE
arrow-down

10 Comments

AAdam B, Jan, 2023
In Indiana Me and wife was sued over medical bill and default judgement entered for $345.16. Then the attorney for hospital somehow separated the bill and sued me again for $292.96 I paid it since the first I heard of the bill. I figured it was settled. Nope they garnished my wife check for roughly $514.00. Reason I’m asking cause I’m going through are finances and came across this. So they judgement was for $345.16 but some how the attorney ended up with $806.96. Can somebody explain this to me. Please!!
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?

JJosh, 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.