Wage Garnishment

A creditor with a court judgment has the right to "garnish" money belonging or owed to you that is in the hands of a third party. "Garnish" means to take. Most often a creditor attaches a debtor's wages before they are paid to the debtor. In Indiana, in order to garnish an individual's wages, a creditor must first obtain a favorable judgment on the debt, which requires a court hearing. Then, the creditor must move for a wage attachment, which requires a separate hearing. If garnishment is then approved, a summons must be served on the employer specifying what wages must be turned over to the creditor.

What wages may a creditor attach?

In Indiana, a creditor may only attach wages a debtor has earned but not yet been paid. Thus, the creditor must pay a process server to deliver the summons to the employer in time to garnish earned wages before they are paid to the debtor.

How much of my wages can be garnished?

Under Indiana law, the first $125/week of wages due is exempt from garnishment. Federal law establishes a maximum of 25% of "disposable" (after tax) income that may be subject to garnishment. Thus, the combination of state and federal statutes means the following:

A higher amount can be garnished if the debt is for child support or alimony. The guidelines outlined above are based on federal law and set out minimum wage protections for debtors in all fifty states. Some states prohibit all wage garnishment or allow a smaller amount of wages to be garnished than the federal standard.

The above information should be understood to be a general discussion of the subject matter and DOES NOT constitute a legal opinion about the situation. For further information please consult a qualified attorney.

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