Bill > SB0197

This bill makes several changes related to garnishment and bankruptcy exemptions. It requires that garnishment or attachment orders, which instruct an employer to withhold money from an employee's earnings (known as disposable earnings, meaning what's left after legally required deductions), must include specific information about the debtor and creditor, such as names, addresses, and the amount owed, to help the employer process the order. Additionally, the bill increases the amount of certain types of intangible personal property, like bank accounts and cash, that are exempt from bankruptcy proceedings from $300 to $1,500, and it removes the requirement for the Department of Financial Institutions to create rules for adjusting these bankruptcy exemption amounts, effectively setting the new exemption amount directly in the law. The bill also adjusts the calculation for how much of an individual's disposable earnings can be garnished for judgment debts, increasing the multiplier from 30 to 83 times the federal minimum hourly wage, which generally allows for more of an individual's earnings to be protected from garnishment.

Business and Industry, Justice

https://iga.in.gov/legislative/2026/bills/senate/197/details