Indiana is a state in financial transition. Bankruptcy filings surpassed 17,000 in 2025 – consistently ranking the Hoosier State among the top 15 nationally per capita. Average unsecured debt for relief-seekers reached $69,952 in H1 2025 – well above the national average. And a series of landmark 2026 laws – including Senate Bill 225 (hospital debt collection restrictions) and a pending Senate bill capping medical garnishment at 10% – are reshaping the landscape for debtors in real time. This guide shows how to use Indiana’s unique hardship garnishment reduction, the new 2026 medical debt protections, mandatory collector licensing, and the 6-year statute before a 10-year renewable judgment locks your financial future.
Complete guide to IN laws, the 25% garnishment rate and 10% hardship reduction, Indiana’s 2026 landmark medical debt law, the 6-year statute, and stopping creditor judgments in the Hoosier State.
- Attorney-backed protection: Local legal experts defend your assets across all 92 Indiana counties.
- No upfront fees: You pay nothing until your debt is settled.
- Indiana debt specialists: Experts in the ICPA, the new 2026 medical debt protections, and Indiana’s court-ordered hardship garnishment reduction.
Use our free CheckDebt Tool to calculate your balance and compare your relief options instantly.
Financial hardship in Indiana: you are not alone
Indiana’s manufacturing base and agricultural economy provide stability for many – but not enough protection against a debt surge that is accelerating faster than wages.
- 17,000+ – Indiana bankruptcy filings as of June 2025. Consistently top 15 nationally per capita. Up from 14,681 in 2023.
- $69,952 – Average total unsecured debt for Indiana debt-relief seekers in H1 2025. Above the national average for debt-relief seekers.
- $12,917 – Average credit card balance for Indiana debt-relief seekers in 2024. Below the national average among debt-relief seekers ($15,636) – but rising.
- $2,728 – Average balance for Indiana debt-relief seekers with accounts in collections in 2024.
- $1,463 – Average monthly debt payment for Indiana debt-relief seekers in 2024 – a significant share of median household income.
- 23% – Share of Indiana adults carrying at least one debt in collections – slightly above the national average of 22% (Urban Institute, August 2025).
- 6,000+ – Debt collection complaints filed with the CFPB by Indiana residents between January 2025 and March 2026 – one of the most common financial complaint categories in the state.
- $67,173 – Median household income in Indiana. With a minimum wage still at the federal floor of $7.25/hour – the 25% garnishment rate on low wages creates severe financial pressure.
Local impact: Financial distress is most acute in Marion County (Indianapolis, Lawrence, Beech Grove), Lake County (Gary, Hammond, East Chicago), Allen County (Fort Wayne), St. Joseph County (South Bend, Mishawaka), and Vanderburgh County (Evansville). In Gary and Hammond, long-standing industrial contraction has pushed delinquency rates among the highest in the state. Rural counties in Southeast Indiana – including Jefferson, Scott, and Jackson – face high poverty combined with limited access to legal services. Tippecanoe County (Lafayette) and Monroe County (Bloomington) carry significant student loan debt pressure from their large university populations.
Resolve Group serves clients across Indiana with no upfront fees. You pay only when results are delivered.
Indiana laws & the «Grade F» risk
The 25% garnishment threat - with a critical hardship escape valve
Indiana follows the federal garnishment standard but adds one uniquely powerful protection for debtors in financial hardship. Under IC § 24-4.5-5-105, a judgment creditor can seize the lesser of:
- 25% of your weekly disposable earnings, OR
- The amount by which your weekly disposable earnings exceed 30 times the federal minimum wage ($217.50/week)
This mirrors the federal standard – Indiana provides no additional percentage reduction by default, unlike Colorado (20%) or South Dakota (20%).
The hardship escape valve - Indiana's most critical garnishment protection:
However, Indiana courts can reduce the garnishment to as little as 10% of disposable earnings if the debtor demonstrates good cause – meaning that the standard 25% would leave them unable to meet basic living expenses for themselves and their dependents. This judicial discretion is a uniquely powerful Indiana protection.
To activate this reduction, you must:
- File a written objection with the court upon receiving the garnishment order.
- Appear at a hearing and demonstrate that 25% leaves insufficient income for essential needs.
- Present evidence of actual monthly expenses – rent, utilities, food, childcare, medical costs.
A licensed Indiana attorney filing this motion in Marion or Lake County can cut your garnishment rate by more than half – from 25% to 10% – with proper documentation.
Garnishment writ duration: Indiana wage garnishment writs are returnable to court within 30 days and must be served on each payday by an officer. The employer withholds wages pending further court order. Unlike Georgia’s automatic 3-year continuing writ, Indiana garnishments require more frequent creditor action – creating regular windows for attorney intervention.
One garnishment at a time: No creditor can issue more than one garnishment against the same debtor during any 30-day period. This prevents simultaneous stacking by multiple creditors.
Protected income streams:
- Social Security, SSDI, SSI – federally protected from private creditor garnishment.
- Unemployment benefits and workers’ compensation – exempt under Indiana law.
- Veterans’ benefits and disability payments – exempt.
- Most pension and retirement accounts (IRAs, 401(k)s) – protected under Indiana’s bankruptcy exemptions (IC § 34-55-10-2) and federal law.
- Professional health aids prescribed by a doctor – exempt from levy.
- Tenancy by the entireties – real estate held jointly by spouses is protected from garnishment unless both spouses are jointly liable for the debt.
Bank account trap: Indiana’s bankruptcy exemptions (IC § 34-55-10-2) apply to bank account levies as well. Real estate or personal property constituting your residence is protected up to $17,600 in value. Other personal property – up to $9,350. These amounts change periodically; always verify current limits before relying on them.
The fear: A judgment is entered in Marion County against you. The 25% garnishment begins. You are supporting two children on a single income – but the hardship motion was never filed. The garnishment continues indefinitely at the maximum rate.
The solution: Resolve Group connects you with a licensed Indiana attorney who files the hardship motion immediately – presenting a case for the 10% cap before the first deduction is made.
The 2026 medical debt revolution - Indiana's landmark protections
Indiana passed two landmark medical debt laws in 2026 that fundamentally change the rules for hospital debt collection:
Senate bill 225 (signed March 2026) – hospital pricing transparency shield:
- Prohibits hospitals, debt collectors, and third parties from pursuing medical debt collection if the hospital is not in compliance with federal and state hospital price transparency laws.
- The Indiana Department of Health determines compliance every six months.
- Non-compliant hospitals have their authority to pursue medical debt collection suspended by the Attorney General.
- Creates an affirmative defense for debtors – if a hospital violated pricing transparency rules during collection, the debt may be legally uncollectable.
- Debtors injured by violations can bring a private cause of action and recover damages.
Senate bill 197 (passed Senate, January 2026) – medical debt garnishment caps:
- Eliminates wage garnishment entirely for patients earning at or below 200% of the federal poverty level.
- Caps wage garnishment at 10% of income for patients earning above that threshold.
- Prohibits hospitals from placing liens on patients’ primary residences for medical debt.
- Requires hospitals to offer payment plans of at least two years.
Together, these laws represent the most significant consumer medical debt reforms in Indiana’s history. If a hospital is threatening your wages or home for a medical bill – check compliance status first.
The 10-year judgment trap - renewable indefinitely
Indiana court judgments carry a significant enforcement window.
- A court judgment in Indiana is enforceable for 10 years – and renewable before expiration for an additional 10-year period.
- Successive renewals can extend enforcement indefinitely.
- Creditors use the judgment to pursue wage garnishment, bank account levies, and property liens.
- Homestead exemption (bankruptcy context): Indiana protects up to $22,750 of home equity per debtor in bankruptcy proceedings (Ga. Code Ann. equivalent: IC § 34-55-10-2). For married couples, this doubles to $45,500 – one of the more modest homestead protections in the Midwest.
- Wildcard exemption: Indiana provides a $12,100 wildcard (updated periodically) applicable to any property, including a vehicle – one of the most generous wildcards in the region.
The fear: A default judgment entered today in Allen or St. Joseph County. Renewed after 10 years. Wage garnishment runs at 25% every 30-day writ cycle. A property lien attaches to your home above the $22,750 exemption – in markets where equity has grown significantly since 2020.
The solution: A verified Indiana attorney challenges the debt before judgment – and files the hardship motion immediately when garnishment begins.
The collector next door: how Indiana's licensing system changes the game
Most states in this guide fall into one of two camps – “protective” states with mandatory collector registration, or “permissive” states relying only on federal law. Indiana occupies a unique middle ground – and understanding it is critical.
Indiana requires collection agencies to be licensed under IC § 25-11-1 et seq., administered by the Indiana Secretary of State. This is a meaningful protection that states like Georgia, Vermont, and New Mexico do not have. Any third-party collector operating in Indiana without a license is doing so illegally – and their collection activity may be challengeable.
To verify a collector’s license: Indiana Secretary of State at in.gov/sos or (317) 232-6576.
Now picture what happens when a collector operates anyway without that license. The BBB rates debt collection agencies from A+ to F. A Grade F is not a bad review – it is a documented record of systematic violations. In Indiana, the pattern typically unfolds like this:
The license check bypass. A Grade F agency begins calling Indiana residents without registering with the Secretary of State. They calculate that most debtors never verify licensure. Under IC § 25-11-1, unlicensed collection activity is illegal – and every collection attempt is an independent violation of both state law and the FDCPA.
The call cascade. They call 10, 12, 15 times in a day – well above the 7-calls-in-7-days ceiling under Regulation F (2021). Under the FDCPA, each call above the limit is an independent violation carrying up to $1,000 in statutory penalties plus attorney’s fees.
The false authority play. They claim to represent the court, the sheriff’s office, or a law firm. They threaten immediate arrest. In Indiana, no private creditor can initiate wage garnishment without a court judgment following proper notice. Any suggestion of immediate legal action without a filed lawsuit is a fabrication – and an FDCPA violation.
The validation shell game. They refuse to send the Validation Notice – the document confirming the debt’s amount, ownership, and your right to dispute. Under the FDCPA and Indiana’s Deceptive Consumer Sales Act (IC § 24-5-0.5), collecting without validation is prohibited. You have 30 days from first contact to request it in writing.
The expired debt gamble. Indiana’s 6-year statute of limitations is long enough that collectors tracking old accounts sometimes miscalculate whether it has run. They attempt collection on time-barred debts – counting on debtors not knowing their rights.
Indiana’s dual enforcement architecture:
The FDCPA covers third-party collectors – and violations carry $1,000 statutory damages plus attorney’s fees. Indiana’s Deceptive Consumer Sales Act (IC § 24-5-0.5) covers a broader range of unfair or deceptive commercial acts – including by original creditors. And Indiana’s mandatory licensing requirement (IC § 25-11-1) adds a third enforcement layer that does not exist in truly permissive states.
Report violations to the Indiana Attorney General’s Consumer Protection Division at (317) 232-6330, (800) 382-5516, or in.gov/attorneygeneral. Also file with the CFPB at consumerfinance.gov/complaint.
The solution: Resolve Group vets every attorney in its network through a 360° verification process – Indiana State Bar license check, debt resolution and ICPA expertise, background review, and client ratings. You never deal with an unverified entity.
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Speak to an Indiana attorney NowComparing your debt relief options in Indiana
Not all debt relief solutions are equal. The right option depends on your total debt amount, income level, and how urgently creditors are pursuing you.
Option | Best for | Typical fees | Impact on credit | Legal protection |
|---|---|---|---|---|
Non-profit credit counseling | Reducing interest rates and consolidating payments into one monthly amount. | Low monthly fees ($25–$75). | Minimal / Positive (shows consistent effort to repay). | None (creditors can still sue and garnish). |
Debt settlement | Reducing total principal when you cannot repay in full. Average savings of 40–55%. | 15–25% of enrolled debt (performance-based). | Severe negative (requires accounts to be delinquent). | None (risk of lawsuits until settlement reached). |
Bankruptcy attorneys | Stopping active garnishments, bank levies, and property liens immediately. | IN filing fees + legal fees ($1,000–$3,500). | Maximum impact (stays on credit report 7–10 years). | Total (court-ordered Automatic Stay protection). |
Why choose Resolve Group?
We do not send you to a call center. We match you with a local Indiana attorney who has passed our 360° verification:
- ✅ Active Indiana State Bar license confirmed
- ✅ Debt resolution, garnishment hardship defense, and 2026 medical debt law expertise verified
- ✅ Background and disciplinary history checked
- ✅ Client reviews and ratings reviewed
You pay nothing upfront. Fees apply only when results are delivered. Resolve Group serves clients with over $20,000 in unsecured debt who need real legal leverage – not just a phone negotiator.
Use our free CheckDebt Tool to compare your options in minutes.
Indiana debt statutes: the 6-year rule
The Statute of Limitations is the legal deadline after which a creditor can no longer sue you to collect a debt. Once this period expires, the debt is “time-barred.” Any lawsuit filed after this deadline must be dismissed by a court.
Debt type | Statute of limitations | Indiana Law |
|---|---|---|
Credit cards / open accounts (written) | 6 Years | IC § 34-11-2-9 |
Medical bills (written contracts) | 6 Years | IC § 34-11-2-9 |
Personal loans (written contracts) | 6 Years | IC § 34-11-2-9 |
Oral (unwritten) contracts | 6 Years | IC § 34-11-2-7 |
Sale of goods / auto deficiencies (UCC) | 4 Years | IC § 26-1-2-725 |
Court judgments | 10 Years (renewable) | IC § 34-11-2-12 |
Unique Indiana feature: Both written and oral contracts carry the same 6-year limitation – unlike most states where oral contracts carry a shorter period. This simplifies the analysis: virtually all consumer debt starts its 6-year clock running from the date of the last payment on the account (IC § 34-11-3-1).
Critical warnings:
- The reset trap: Any payment on an old debt restarts the 6-year clock from zero. Indiana courts have confirmed that on a mutual, open, and current account, the cause of action accrues from the date of the last item proved on either side (IC § 34-11-3-1). This is the most common trap collectors use – a token “good faith” payment gives them a fresh 6-year window.
- The 20-day response deadline: You have 20 calendar days after being served a summons to file a written answer with the Indiana court (Indiana Trial Rule 6). Missing this deadline means an automatic default judgment – regardless of whether the statute had expired.
- The renewal trap: Indiana’s 10-year judgment can be renewed before expiration. A judgment entered in 2025 can be renewed in 2034 – then again in 2044. Successive renewals give creditors an effectively unlimited enforcement window.
- The small claims trap: Indiana creditors can file in Small Claims Court for debts under $10,000 – a simplified procedure with no jury and accelerated timelines. Many Indiana consumers receive small claims summonses and do not realize they must still respond within 20 days.
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Bankruptcy in Indiana: the «Nuclear Option» to stop garnishments
When debt settlement is not fast enough, Indiana residents turn to Federal Bankruptcy laws for immediate relief.
- Chapter 7 (Liquidation): Best for residents with lower income. It eliminates most unsecured debts – credit cards and medical bills – in 4 to 6 months. You must pass the Indiana Means Test to qualify. Indiana’s below-average per capita income ($35,578) means many residents qualify for Chapter 7 without difficulty.
- Chapter 13 (Reorganization): Best for homeowners in Indianapolis, Fort Wayne, or Evansville who are behind on their mortgage. You keep your assets and repay a portion of your debt over 3 to 5 years under a court-approved plan. It prevents foreclosure, repossession, and terminates any active garnishment writ on the day of filing.
The Indiana advantage: Filing either chapter triggers the Automatic Stay. This legal shield immediately forces creditors to stop all collection calls. It halts any active wage garnishment, bank levy, and property lien – on the day of filing.
Local court expertise: Indiana has two federal bankruptcy districts – Northern and Southern:
Northern District of Indiana – Three staffed offices, serving the northern half of the state:
- South Bend (Primary) – 401 South Michigan Street, South Bend, IN 46601. Phone: (574) 968-2265. Open Monday through Friday, 9:00 AM to 4:00 PM ET. Chief Judge James R. Ahler (Hammond), Judge Paul E. Singleton (South Bend). Serves St. Joseph, LaPorte, Starke, Marshall, Cass, Elkhart, Fulton, Kosciusko, Miami, Pulaski, and Wabash Counties.
- Fort Wayne – 1300 South Harrison Street, Fort Wayne, IN 46802. Phone: (574) 968-2265. Judge Robert E. Grant (Fort Wayne). Serves Allen, Adams, Blackford, DeKalb, Grant, Huntington, Jay, LaGrange, Noble, Steuben, Wells, and Whitley Counties.
- Hammond – Serves Lake, Porter, Newton, Jasper, Benton, Carroll, White, Warren, and Tippecanoe Counties (including Lafayette). Judge James R. Ahler presides.
Southern District of Indiana – Four locations serving the southern half of the state:
- Indianapolis (Primary) – 116 U.S. Courthouse, 46 East Ohio Street, Room 116, Indianapolis, IN 46204. Phone: (317) 229-3800. Serves Marion, Hamilton, Hendricks, Johnson, Boone, Madison, Morgan, Shelby, Hancock, and surrounding central Indiana counties – the most populous district.
- Evansville – Serves Vanderburgh, Warrick, Gibson, Posey, Spencer, Perry, Crawford, and surrounding Southwest Indiana counties.
- New Albany – Serves Floyd, Clark, Harrison, Washington, Scott, Jefferson, Jennings, Jackson, and surrounding southeast Indiana counties.
- Richmond – Serves Wayne, Fayette, Union, Randolph, and surrounding east-central Indiana counties.
Both Indiana bankruptcy districts are part of the Seventh Circuit Court of Appeals – which also covers Illinois and Wisconsin.
- The fear: A creditor enters a 10-year renewable judgment in Marion or Lake County. Wage garnishment begins at 25% every 30-day writ cycle. The hardship motion was never filed. A bank account levy simultaneously depletes your savings.
- The solution: A verified Indiana bankruptcy attorney files for an immediate Automatic Stay – stopping all collection action on the day of filing.
Solutions tailored to your specific situation
Medical bills
Indiana is in the middle of a landmark shift in medical debt law – making 2026 the most important year in decades for Hoosiers facing hospital bills.
- Medical debt is a primary driver of financial distress across Indiana – particularly in rural counties with limited provider access and high rates of uninsured and underinsured residents.
- Senate Bill 225 (signed March 2026): Hospitals that violate federal or state hospital price transparency rules cannot legally collect medical debt during the period of noncompliance. This creates an affirmative defense for many Indiana debtors facing hospital collection. Always verify your hospital’s compliance status before paying or negotiating.
- Senate Bill 197 (passed Indiana Senate, January 2026): Wage garnishment for medical debt is eliminated for patients at or below 200% of the federal poverty level. Above that threshold, the cap drops to 10% – far below the standard 25%. Hospitals cannot place liens on primary residences. Payment plans of at least two years are mandatory.
- Major medical debt generators include Indiana University Health (multiple counties), Eskenazi Health (Marion County), Parkview Health (Allen County), Beacon Health (St. Joseph County), and Deaconess Health (Vanderburgh County).
- Medical bills carry a 6-year statute of limitations in Indiana.
- Medical debt is among the most negotiable forms of consumer debt – professional settlement typically achieves 40 to 60% reductions on the original balance.
Credit card debt
Credit card debt is the primary driver of Indiana’s rising debt-relief caseload.
- Average credit card balances for Indiana debt-relief seekers reached $12,917 in 2024 – below the national debt-relief average, but growing steadily.
- Families in Indianapolis, Fort Wayne, and Evansville face rising housing and childcare costs that push recurring expenses onto revolving credit at APRs exceeding 21%.
- Indiana’s minimum wage remains at $7.25/hour – the federal floor – meaning even small garnishments can consume a devastating share of take-home pay for hourly workers.
- Credit card debt is unsecured – creditors are willing to negotiate significant reductions when accounts are delinquent and bankruptcy is a credible alternative.
- Resolve Group attorneys negotiate directly with major issuers including Chase, Capital One, Citibank, Discover, and regional issuers.
- Professional settlement typically saves 40 to 55% of the original balance.
- Note: forgiven debt may generate a 1099-C tax form. Indiana’s income tax rate drops to 3.05% in 2026 (continuing the staggered cut toward 2.9% in 2027) – consult a tax professional alongside your debt advisor.
Payday loans
Indiana regulates payday lending through the Indiana Department of Financial Institutions (DFI).
- Indiana permits small consumer loans – payday loans – under a structured regulatory framework with rate caps and term limits.
- All payday lenders must be licensed by the Indiana DFI. Unlicensed lenders are operating illegally.
- Indiana’s Consumer Credit Code caps fees on small consumer loans and requires clear disclosure of total costs.
- If your lender is unlicensed or charged above-cap fees, the loan may be legally unenforceable.
- Senate Bill 197 – if signed into law in its current form – would further restrict high-cost lenders’ ability to garnish wages for medical-adjacent loan products.
- Report violations to the Indiana DFI at (317) 232-3955 or dfi.in.gov, or to the Indiana Attorney General at (800) 382-5516.
Student loans
Indiana is home to Indiana University (Bloomington, Monroe County), Purdue University (West Lafayette, Tippecanoe County), Notre Dame (St. Joseph County), Ball State University (Muncie, Delaware County), Indiana State University (Terre Haute, Vigo County), and the Ivy Tech Community College statewide network. Student loan debt is a significant burden across Monroe, Tippecanoe, St. Joseph, and Marion Counties.
- Federal student loans cannot be included in most debt settlement programs.
- Indiana’s legislature created a Student Loan Ombudsman – now operating within the Indiana Department of Financial Institutions – to handle student loan servicer complaints.
- Income-driven repayment plans, Public Service Loan Forgiveness (PSLF), and hardship-based discharge provisions may be available.
- Indiana state and local government workers – including those employed in Indianapolis (state capital) – may qualify for accelerated PSLF timelines.
- Private student loans are unsecured and can sometimes be negotiated or settled similarly to credit card debt.
Veterans & active military
Indiana has a significant military presence concentrated in several key installations.
- Camp Atterbury (Bartholomew County, Edinburgh) – One of the most active National Guard training centers in the country. Home to the Indiana Army National Guard’s primary training facility. Thousands of Guard members and their families across Bartholomew, Johnson, and Brown Counties.
- Naval Support Activity Crane (Martin County) – One of the Navy’s largest weapons support facilities. Thousands of civilian and military personnel in a rural, economically vulnerable region.
- Grissom Air Reserve Base (Miami County) – Home to the 434th Air Refueling Wing, Air Force Reserve.
- Indiana National Guard – Armories and units across all 92 counties.
Federal law – the Servicemembers Civil Relief Act (SCRA) – caps interest rates at 6% on pre-service debts. Indiana’s mandatory collector licensing requirement provides additional protection – an unlicensed collector targeting a Guard member can face both federal FDCPA liability and Indiana state enforcement action.
- The fear: A payday lender or debt collector targets a Guard member during activation. Indiana’s mandatory licensing law was violated. The debt is collected without a valid license. A 10-year judgment is entered during deployment.
- The solution: A verified Indiana military debt attorney asserts SCRA rights, challenges the unlicensed collection action, and protects the service member’s income and home.
Retirees & seniors
Indiana retirees face compounding pressure from the state’s low minimum wage floor and the modest homestead exemption.
- Social Security and pension benefits are federally protected from private debt garnishments.
- Indiana’s $22,750 homestead exemption provides limited protection for retirees in Indianapolis or Fort Wayne suburbs where home equity has grown well beyond this threshold.
- The state’s $12,100 wildcard exemption is one of the most generous in the Midwest – and can be applied strategically to protect cash, vehicles, or other assets.
- Indiana Senate Enrolled Act 1 (2025) added a 10% annual property tax credit (up to $300) for all homeowners, with an additional $150 credit for qualifying residents aged 65+ – providing meaningful relief for senior homeowners.
- Seniors in Marion, Lake, and Allen Counties are among the most targeted by collectors pursuing 10-year judgment renewals.
- Resolve Group helps retirees understand exactly what creditors can and cannot legally touch – before any levy or lien action is initiated.
Single parents
Managing debt on a single income in Indiana – where the minimum wage remains at $7.25/hour and the full 25% garnishment rate can be applied – is one of the most financially exposed situations a family can face.
- Indiana’s hardship garnishment reduction to 10% is the most important legal tool for single parents facing garnishment. A single parent earning $2,000/month in disposable income loses $500/month at the 25% rate – but only $200/month if the hardship motion succeeds. That $300/month difference can mean the difference between stability and eviction.
- Families in Lake County (Gary, Hammond) and Marion County’s lower-income neighborhoods face some of the highest garnishment rates in the state.
- Indiana’s one-garnishment-per-30-days rule provides a small but meaningful protection against simultaneous wage seizures by multiple creditors.
- If you owe more than $20,000 in unsecured debt, Resolve Group’s free consultation shows you a realistic path forward – with no upfront cost and no obligation.
- The fear: A 25% garnishment begins against a single parent’s paycheck. The hardship motion window passes. $500 per month disappears for cycle after cycle while children’s basic needs go unmet.
- The solution: A verified Indiana attorney files the hardship motion within the first 30-day writ cycle – and presents the case for 10% at court.
FAQ
How does Indiana debt relief work?
Is it worth going through a debt relief program?
What is the 7-7-7 rule for debt collectors?
Will debt relief hurt your credit?
What is the Indiana hardship garnishment reduction and how do I claim it?
Can a partial payment restart my 6-year statute of limitations in Indiana?
Take control before the court does
Indiana is carrying over $69,952 in average unsecured debt per debt-relief seeker – above the national average. Bankruptcy filings surpassed 17,000 in 2025 and continue to rise. And the state’s full 25% garnishment rate, applied at Indiana’s $7.25/hour minimum wage, creates some of the most punishing paycheck seizures in the Midwest.
Indiana law gives you real tools to fight back – the 10% hardship garnishment reduction, the 2026 medical debt revolution under SB 225 and SB 197, mandatory collector licensing requirements, the 6-year statute, and the Deceptive Consumer Sales Act. But those tools only work if they are asserted proactively – within the first 30-day writ cycle, before the default judgment is entered, and before the 10-year clock starts running.
- The fear: A 10-year renewable judgment in Marion or Lake County today. Twenty-five percent of every paycheck gone each cycle. The hardship motion never filed. A bank account levied. A property lien attaching to your home above the $22,750 exemption.
- The solution: A verified, local Indiana attorney acts before the judgment – filing the hardship motion, asserting every exemption, checking hospital pricing transparency compliance, and protecting your paycheck and home from the first writ cycle.
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