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Indiana Claim of Exemption

Indiana claim of exemption: protect wages from garnishment. Raise your exemption in the proceedings supplemental, and see what income is exempt in Indiana.

Introduction

An Indiana claim of exemption is a request you file with the court to protect some or all of your wages or bank funds from a garnishment. An exemption is money the law says a creditor cannot take. After a creditor wins a money judgment, it can start a proceedings supplemental to garnish your wages, and you are ordered to appear so the court can decide what can be applied to the debt. In Indiana there is no fixed number of days to file: you can request a hearing earlier, but you may also raise your exemption at the proceedings supplemental hearing set in the order to appear. Indiana caps ordinary wage garnishment at the federal level, and some income like Social Security is exempt no matter the debt. Because money can be taken while the case runs, act quickly. DocDraft prepares an Indiana claim of exemption from your details, and attorney review is available before you file.

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Key Things to Know

  1. 1

    An Indiana claim of exemption is a request you file with the court to protect some or all of your wages or bank funds from garnishment. It tells the court the money is exempt, meaning the law does not let a creditor take it. In Indiana you use a Notice of Exemption Rights and Request for Hearing.

  2. 2

    There is no fixed number of days. You can request a hearing sooner, but you may also present your exemption at the proceedings supplemental hearing set in the order to appear that you receive. Because that timing is not a strict deadline, raise your claim as early as you can.

  3. 3

    Indiana follows the federal wage limit. Under Indiana Code section 24-4.5-5-105, a creditor can take no more than the lesser of 25 percent of your disposable earnings, or the amount by which your weekly disposable earnings exceed 30 times the federal minimum hourly wage.

  4. 4

    Some income is exempt no matter the debt. Social Security, disability, veterans benefits, and many pensions and public benefits are protected, and a claim of exemption is how you free those funds if a bank has frozen them.

  5. 5

    Garnishment runs through a proceedings supplemental. Under Indiana Trial Rule 69(E) the creditor asks the court to order you to appear and be examined about your assets, and that hearing is where exemption claims are usually raised and decided.

  6. 6

    Money can be taken while the case is pending, so act fast. Requesting your hearing and filing your exemption claim early limits what is applied to the judgment before the court rules.

  7. 7

    The court decides your claim at a hearing. If you file a claim of exemption, the court holds a hearing to determine whether the property is exempt, and a hearing may be set promptly on request.

Key decisions before you file

Before you file a Claim of Exemption in Indiana, a few decisions shape the document: which option to choose and what each one means. The Claim of Exemption guide walks through them.

Open the Claim of Exemption guide

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CLAIM OF EXEMPTION (INDIANA - PROCEEDINGS SUPPLEMENTAL)

Filed under Indiana Code article 24-4.5, chapter 5, and Indiana Trial Rule 69(E). The judgment debtor claims that some or all of the wages or funds being garnished are exempt and requests a hearing to protect them.

  1. COURT AND CASE Court that issued the judgment: [COURT NAME] Case number: [CASE NUMBER] Proceedings supplemental hearing date (from the order to appear): [HEARING DATE, IF SET]

  2. PARTIES Judgment creditor (plaintiff): [CREDITOR NAME] Judgment debtor (you): [DEBTOR NAME] Debtor address: [DEBTOR ADDRESS] Garnishee (employer or bank): [GARNISHEE NAME]

  3. WHAT IS BEING GARNISHED [ ] Wages from my employer: [EMPLOYER NAME] [ ] Funds in my account at: [BANK NAME] Approximate amount being taken: $[AMOUNT]

  4. EXEMPTION CLAIMED I claim that the money is exempt for the following reason(s): [ ] The amount withheld is more than the wage-garnishment limit under Indiana Code section 24-4.5-5-105 allows. [ ] The funds come from an exempt source: [SOCIAL SECURITY / DISABILITY / VETERANS BENEFITS / PENSION / OTHER]. [ ] Other exempt property under Indiana or federal law: [DESCRIBE]. Amount I ask the court to protect: $[AMOUNT CLAIMED EXEMPT]

  5. SOURCE OF THE FUNDS Describe where the money comes from: [DESCRIPTION OF WAGES OR DEPOSITED FUNDS]

  6. FINANCIAL STATEMENT (attach if the court requires one) Monthly take-home income: $[INCOME] Monthly necessary expenses: $[EXPENSES] Number of people I support: [NUMBER OF DEPENDENTS]

  7. REQUEST FOR HEARING I request a hearing to determine that the wages or funds above are exempt and ask the court to protect them until the hearing is held.

  8. VERIFICATION I declare under penalty of perjury under the laws of the State of Indiana that the statements above are true and correct.

Debtor signature: [SIGNATURE] Printed name: [NAME] Date: [DATE]

Note: File this Notice of Exemption Rights and Request for Hearing with the court that issued the judgment. You may raise your exemption at the proceedings supplemental hearing set in your order to appear, or request an earlier hearing. Confirm the current form and procedure, or have this reviewed by an attorney, before you file.

Indiana Requirements for Claim of Exemption

Indiana Filing Deadline and Office

File the Indiana claim of exemption with the correct office, the court or the levying officer as Indiana directs, within the state's window after the garnishment is served. Money is usually held until the claim is decided, so filing late can forfeit wages the law would otherwise protect.

Frequently Asked Questions

An Indiana claim of exemption is a request, filed as a Notice of Exemption Rights and Request for Hearing, that you use to protect wages or bank funds from a garnishment. It tells the court that some or all of the money is exempt, meaning the law does not let a creditor take it. You file it with the court that issued the judgment, and you can raise it at or before the proceedings supplemental hearing.

An objection challenges whether the garnishment itself is proper, such as a wrong amount or a defect in the process. An Indiana claim of exemption accepts that the judgment exists but says the specific wages or funds are legally protected. You raise the exemption through your Request for Hearing in the proceedings supplemental, and you can point out a defect at the same time.

Indiana follows the federal limit. Under Indiana Code section 24-4.5-5-105, a creditor can take the lesser of 25 percent of your disposable earnings for the week, or the amount by which your weekly disposable earnings exceed 30 times the federal minimum hourly wage. Disposable earnings are what is left after legally required deductions. Some income, such as Social Security, cannot be garnished for ordinary debts at all.

Indiana does not set a fixed number of days. Garnishment runs through a proceedings supplemental, and you may raise your exemption at the hearing set in the order to appear, or request an earlier hearing. Because money can be applied to the judgment while the case runs, raise your claim as soon as you learn of it.

Social Security, Supplemental Security Income, disability, veterans benefits, and many pensions and public benefits are exempt from garnishment for ordinary debts, no matter how much you owe. A baseline share of ordinary wages is also protected under the federal limit. If exempt benefits are frozen in a bank account, a claim of exemption is how you get them released.

Indiana does not add a separate head-of-household wage exemption, so the same federal wage limit applies whether or not you support a family. You can still protect income that is exempt by source, such as Social Security, disability, or veterans benefits, by raising it in your Request for Hearing and showing the court those funds are protected.

You file an Indiana claim of exemption with the court that issued the judgment, not with the creditor or your employer. Because garnishment runs through a proceedings supplemental, you file your Notice of Exemption Rights and Request for Hearing in that case, and the court sets a hearing to decide whether the property is exempt.

The court holds a hearing to decide whether your wages or funds are exempt, either at the proceedings supplemental date or at an earlier hearing you request. At the hearing you show the money is protected, and the creditor must justify applying it to the judgment. If the court agrees the money is exempt, it protects those funds from the garnishment.