Money & Debt · Wage Garnishment
Wage Garnishment Laws in Indiana
How much of your paycheck a creditor can take in Indiana, the pay that is fully protected, and what to do right now if a garnishment has started, cited to the statute.
Want your own number? Run your paycheck through the Indiana wage garnishment calculator →
The limit and what is protected in Indiana
How much a creditor can take, the pay that is exempt, and where it comes from in the code.
| Most a creditor can take | 25% (as little as 10% for good cause) of disposable earnings |
| How the limit works | The federal ceiling: 25% of disposable pay, or 30× the minimum wage protected |
| Fully protected pay | Weekly disposable pay up to $217.50 (30 times the $7.25 federal minimum wage) is fully protected. A creditor can reach only the lesser of 25% of your disposable pay or the amount above $217.50 a week. |
| Other exemptions |
|
| Federal backstop | The federal 25% / 30× minimum-wage floor also applies; a creditor can never take more than federal law allows. |
| Statute | Ind. Code §24-4.5-5-105 |
Indiana follows the federal ceiling for ordinary consumer debt: the lesser of 25% of disposable pay or the amount above $217.50 a week. Its distinctive feature is the good-cause reduction, which lets a court drop the withheld share as low as 10% when a debtor shows hardship. Indiana does not add a head-of-household percentage exemption. Support orders, taxes, and bankruptcy follow separate rules and can reach more of your pay.
What you can do right now
Concrete, neutral steps if your wages are being garnished in Indiana. This is legal information, not legal advice.
- Confirm the protected floor first
Under Ind. Code §24-4.5-5-105 the first $217.50 of your weekly disposable pay cannot be touched, and a creditor can take only the lesser of 25% of disposable pay or the amount above that floor. If your take-home is at or below $217.50 a week, none of it should be garnished.
- Ask the court for a good-cause reduction
Indiana lets a court cut the garnished share below 25%, down to as little as 10%, if you show good cause such as financial hardship. If 25% would leave you unable to cover essentials, ask the court in writing to reduce it and explain why.
- Watch for the employer processing fee
Your employer may add a fee of the greater of $12 or 3% of the amount withheld for handling the garnishment. It is small, but factor it in so you are not surprised when your check is slightly lower than the debt math alone would suggest.
- Get free Indiana legal help
Indiana Legal Services can help you check the math, request a good-cause reduction, and respond to a garnishment. This is legal information, not legal advice, so confirm your own situation with a lawyer.
You do not have to face a garnishment alone. This resource can help you check whether an exemption applies and how to file the paperwork.
→ Indiana Legal Services (statewide free civil legal help)This is general legal information, not legal advice. Deadlines to claim an exemption are short and vary by court, so act quickly and confirm the specifics for your case.
What Indiana workers get wrong
Indiana follows the federal garnishment ceiling, so on an ordinary consumer judgment a creditor can take the lesser of 25% of your disposable pay or the amount by which your weekly disposable pay exceeds $217.50. That $217.50 is 30 times the $7.25 federal minimum wage, and it is always protected. What sets Indiana apart is a built-in safety valve: Ind. Code §24-4.5-5-105 lets a court lower the garnished share below 25%, all the way down to 10%, when the debtor shows good cause. That good-cause reduction is worth asking for if a full 25% would leave you unable to pay rent or feed your family. Indiana does not add a head-of-household exemption to shrink the percentage, so the good-cause route is the main way to get below 25%. One smaller detail catches people off guard: your employer can charge a processing fee of the greater of $12 or 3% of the amount withheld, so a little extra comes out beyond the debt.
Common questions
How much of my paycheck can a creditor garnish in Indiana?
For an ordinary consumer judgment, Ind. Code §24-4.5-5-105 lets a creditor take the lesser of 25% of your disposable pay or the amount by which your weekly disposable pay exceeds $217.50. A court can reduce that share below 25%, to as little as 10%, if you show good cause.
Can I get my Indiana garnishment lowered below 25%?
Yes, if you show good cause. Ind. Code §24-4.5-5-105 gives the court authority to reduce the garnished portion below 25%, down to 10% of disposable earnings, so you can keep enough for essential living costs. You have to raise it with the court and explain your hardship; it is not automatic.
What is the $217.50 protected amount in Indiana?
It is a floor of pay that cannot be garnished at all. Indiana uses the federal formula: 30 times the $7.25 federal minimum wage equals $217.50 a week. A creditor can reach only the portion of your weekly disposable pay above that figure, and never more than 25%, whichever leaves you more.
Can my employer charge a fee for a garnishment in Indiana?
Yes. Ind. Code §24-4.5-5-105 lets an employer collect a fee equal to the greater of $12 or 3% of the total amount deducted for processing the garnishment. That fee is separate from the debt, so a small additional amount may come out of your check.
What debts can take more than 25% of my pay in Indiana?
Child and spousal support, unpaid taxes, and defaulted federal student loans follow their own federal rules and can reach a larger share than the 25% consumer cap. The good-cause reduction and the 25% ceiling apply to ordinary consumer judgments, not to those obligations.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.