State Debt Laws
Indiana Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Indiana
Indiana (IN) - At a Glance
| State Consumer Protection Law | Indiana Deceptive Consumer Sales Act |
| Source | Ind. Code ยง 24-5-0.5 et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 25% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $350 in bank |
| Homestead Exemption | $19,300 |
Key Protections in Indiana
- FDCPA applies to third-party collectors
- Deceptive collection practices actionable under state law
- Low bank account exemption
Wage Garnishment in Indiana
After a court judgment, creditors in Indiana can garnish up to 25% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Indiana follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Indiana
If a debt collector violates the FDCPA or Indiana Deceptive Consumer Sales Act:
- File with the Indiana Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)