How long does the automatic stay last?

Different acts have different endpoints. Under 11 U.S.C. § 362(c), the stay of an act against property of the estate continues until that property is no longer property of the estate, while the stay of any other act continues until the earliest of the case closing, the case being dismissed, or — in a chapter 7 case concerning an individual, or a case under chapter 9, 11, 12 or 13 — a discharge being granted or denied. Exceptions, repeat filings and court-ordered relief can change this.

What if one earlier case of mine was dismissed in the past year?

Section 362(c)(3) applies when a single or joint chapter 7, 11, or 13 case is filed by or against an individual and a single or joint case of that debtor was pending within the preceding 1-year period but was dismissed — pending in that year, not merely dismissed in it. It does not apply to a case refiled under a chapter other than chapter 7 after a § 707(b) dismissal. The stay, as to any action taken with respect to a debt, property securing that debt, or a lease, then terminates with respect to the debtor on the 30th day after the later filing (11 U.S.C. § 362). On a party in interest's motion, the court may extend the stay as to any or all creditors, subject to conditions, after notice and a hearing completed before the 30-day period expires, only if the later filing is in good faith as to the creditors to be stayed.

What if two or more of my cases were dismissed in the past year?

Section 362(c)(4) applies when a single or joint case under title 11 — any chapter — is filed by or against an individual and 2 or more single or joint cases of that debtor were pending within the previous year but were dismissed. A case refiled under a chapter other than chapter 7 after a § 707(b) dismissal is not counted; excluding it does not defeat the rule if two other qualifying cases remain. No stay goes into effect when the later case is filed (11 U.S.C. § 362). Within 30 days after filing, a party in interest may ask the court to impose the stay as to any or all creditors, subject to conditions; the court may do so, after notice and a hearing, only on a showing of good faith as to the creditors to be stayed. An imposed stay is effective when the order is entered.

Can I use the federal bankruptcy exemption list if I file in Indiana?

Indiana has opted out, so an individual debtor domiciled in Indiana is not entitled to the federal exemptions in 11 U.S.C. § 522(d) (Indiana Code § 34-55-10-1). Which state's law applies is set by § 522(b)(3)(A): the law of the place where your domicile was located for the 730 days immediately preceding filing, or, if it was not in a single state for that period, the place where it was located for the 180 days immediately preceding those 730 days, or for a longer portion of that 180-day period than in any other place. Opting out does not reach other federal exemptions outside § 522(d) or retirement funds exempt from taxation under the listed Internal Revenue Code sections, and if that domicile rule would leave you ineligible for any exemption, § 522 lets you elect the subsection (d) list (11 U.S.C. § 522).

Can my employer charge me for processing the garnishment?

Indiana allows a limited fee. An employer required to make deductions under a garnishment order, or a series of orders arising out of the same judgment debt, may collect the greater of $12 or 3% of the total amount required to be deducted, excluding a judgment for payment of child support (IC 37-2-6-4). Half is borne by you and may be deducted from your disposable earnings; half is borne by the creditor. It may be collected only once for that order or series, may be taken from the initial deductions or ratably over the pay periods, and does not increase the judgment debt for judgment interest. A separate $2 fee applies each time a child support deduction is required, with the support payment reduced if needed to stay within the support limits.

Can I be fired because my wages are being garnished?

No employer may discharge an employee because a creditor has subjected or attempted to subject the employee's unpaid earnings to garnishment or like proceedings to pay a judgment (IC 37-2-6-5). If an employer discharges an employee in violation of that section, the employee may within six months bring a civil action for recovery of lost wages and an order requiring reinstatement, with damages not exceeding lost wages for six weeks (IC 37-2-6-9). Federal law also bars discharge by reason of earnings being garnished for any one indebtedness, with penalties for willful violations (15 U.S.C. § 1674). That remedy addresses firing, not the amount withheld.

Wages & debt

Wage Garnishment in Indiana: What the Law Says and What Bankruptcy Changes

For ordinary judgments, Indiana caps weekly garnishment at the lesser of 25% of your aggregate disposable earnings for that workweek — or, on your showing of good cause, less than 25% but at least 10% — and the amount exceeding thirty times the federal minimum hourly wage when payable (IC 37-2-6-4). No creditor may garnish unpaid earnings before judgment (IC 37-2-6-3). Filing a bankruptcy petition generally triggers an automatic stay, which commonly halts wage garnishment, though exceptions, court-ordered relief and repeat filings can change that (11 U.S.C. § 362).

Key points

For one or more judgments, Indiana limits garnishment to the lesser of 25% of a workweek's disposable earnings — reducible on the individual's showing of good cause to less than 25% but at least 10% — or the amount above thirty times the federal minimum hourly wage in effect when the earnings are payable (IC 37-2-6-4).
Disposable earnings under Indiana law means earnings, including wages, commissions, income, rents or profits, left after amounts required by law to be withheld, which is not the same as take-home pay (IC 37-2-6-4).
A support withholding order takes priority over a garnishment order irrespective of their dates of entry or activation, and the garnishment order is honored only within the ordinary maximum that remains (IC 37-2-6-4).
No creditor may attach unpaid earnings before judgment, and no employer may discharge an employee because a creditor has subjected the employee's earnings to garnishment for a judgment (IC 37-2-6-3; IC 37-2-6-5).
Indiana recodified these provisions effective July 1, 2026 as a recodification of prior law that does not affect the prior law's substantive operation and effect (IC 37-2-1-0.1).

If money is already coming out of your paycheck, the useful first step is knowing what Indiana law lets a judgment creditor take and what it does not. This page walks through the state statutes that cap ordinary wage garnishment, the protections that sit alongside them, and what filing bankruptcy changes under federal law. It is general information about those statutes, not legal advice about your situation or a prediction of what a court will do.

How much of your pay can be garnished in Indiana?

Indiana measures ordinary judgment garnishment against your disposable earnings for a workweek. Disposable earnings means the part of your earnings — including wages, commissions, income, rents, or profits — remaining after amounts required by law to be withheld are deducted (IC 37-2-6-4). That is not the same thing as gross pay or take-home pay.

For one or more judgments against you, the maximum part of your aggregate disposable earnings for any workweek subjected to garnishment may not exceed the lesser of two amounts: 25% of that week's disposable earnings, or — upon a showing of good cause by you why the amount should be reduced — less than 25% but at least 10%; and the amount by which that week's disposable earnings exceed thirty times the federal minimum hourly wage prescribed by federal law in effect at the time the earnings are payable. The reduction is not automatic. For a pay period other than a week, the statute uses an equivalent multiple of that thirty-times figure.

What do Indiana statutes require of creditors and courts?

Before judgment, no creditor may attach your unpaid earnings by garnishment or like proceedings (IC 37-2-6-3). These sections are not limited to consumer loans — their scope separately includes garnishments of the earnings of an individual (IC 37-2-6-1). No court may make, execute, or enforce an order or process in violation of these limits (IC 37-2-6-4).

After judgment, collection commonly runs through proceedings supplemental to execution. A creditor may file a verified motion or affidavits in the court that rendered the judgment, alleging that it owns the judgment, that it has no cause to believe a levy of execution will satisfy it, that you appear to answer as to your non-exempt property, and, where an employer is named as garnishee, that the garnishee holds property of or owes money to you (Indiana Trial Rule 69). If the motion meets those requirements, the court orders that appearance ex parte and without notice, and subdivision (E) of the rule governs service and how the date for the hearing or for answering interrogatories is set.

Which income is protected from garnishment under Indiana law?

Indiana's garnishment sections work by capping how much of a workweek's disposable earnings a judgment creditor can reach, not by listing categories of untouchable income. The calculation begins only after amounts required by law to be withheld come out (IC 37-2-6-4). Federal law defines earnings for garnishment purposes to include periodic payments under a pension or retirement program (15 U.S.C. § 1672), and it does not annul, alter or affect state laws prohibiting garnishment or providing more limited garnishment (15 U.S.C. § 1677).

Enforcing an order for support of any person has its own, higher ceilings: up to 50% of a week's disposable earnings where you are supporting a spouse or dependent child other than the one covered by that support order, and up to 60% where you are not — 55% and 65% to the extent the earnings are reached for support covering a period before the twelve-week period that ends with the beginning of that workweek (IC 37-2-6-4).

Which statutory protections may matter when contesting an Indiana garnishment?

Three features come up often. First, the percentage branch of the ordinary cap can be reduced upon a showing of good cause by the individual why the amount should be reduced — to less than 25%, but at least 10%, of that week's disposable earnings (IC 37-2-6-4). The reduction turns on your showing.

Second, if a support withholding order and a garnishment order both reach your pay, the support order takes priority irrespective of their dates of entry or activation, and the garnishment order is honored only to the extent that earnings withheld under the support order leave room under the ordinary maximum (IC 37-2-6-4).

Third, an employer required to make ordinary garnishment deductions may charge a collection fee, but half is borne by you and half by the creditor, it may be collected only once for each garnishment order or series of orders arising out of the same judgment debt, and it does not increase the judgment debt for calculating or collecting judgment interest (IC 37-2-6-4).

How does filing bankruptcy affect an Indiana garnishment?

Filing a voluntary petition commences the case and constitutes an order for relief (11 U.S.C. § 301). Section 362(a) operates as a stay upon filing, without a separate order and without notice as a prerequisite, though notices matter in practice. The stayed acts include continuing an action or proceeding against the debtor that was or could have been commenced before the case, enforcing a prepetition judgment against the debtor or property of the estate, and any act to collect a prepetition claim (11 U.S.C. § 362).

It does not apply to the withholding of income that is property of the estate or of the debtor for payment of a domestic support obligation under a judicial or administrative order or a statute (11 U.S.C. § 362). On a party in interest's request, and after notice and a hearing, the court may terminate, annul, modify or condition the stay — a creditor's request alone does not change it. Prior dismissed cases can also shorten the stay or keep it from arising.

What should you ask a lawyer about an Indiana garnishment?

These statutes set limits, but they do not spell out a form or deadline for objecting to what is being withheld, and that step varies by court. Free or low-cost help may be available through legal aid, and a bankruptcy lawyer can review the judgment, the withholding and your options together. Bring your pay stubs, the court papers you received, and anything your employer gave you. Concrete questions carry further than general ones:

How was the amount taken from my pay calculated, and does it fit the workweek limits in IC 37-2-6-4?
Is there a basis to ask the court to reduce the percentage for good cause, and what showing would that take?
Is a support withholding order also running against my pay, and how does that affect this garnishment?
In this court, how is an objection or claim of exemption raised, and by when?
If I file, what happens to this garnishment, and do any prior dismissed cases affect the automatic stay for me?

Frequently asked questions

How long does the automatic stay last?: Different acts have different endpoints. Under 11 U.S.C. § 362(c), the stay of an act against property of the estate continues until that property is no longer property of the estate, while the stay of any other act continues until the earliest of the case closing, the case being dismissed, or — in a chapter 7 case concerning an individual, or a case under chapter 9, 11, 12 or 13 — a discharge being granted or denied. Exceptions, repeat filings and court-ordered relief can change this.
What if one earlier case of mine was dismissed in the past year?: Section 362(c)(3) applies when a single or joint chapter 7, 11, or 13 case is filed by or against an individual and a single or joint case of that debtor was pending within the preceding 1-year period but was dismissed — pending in that year, not merely dismissed in it. It does not apply to a case refiled under a chapter other than chapter 7 after a § 707(b) dismissal. The stay, as to any action taken with respect to a debt, property securing that debt, or a lease, then terminates with respect to the debtor on the 30th day after the later filing (11 U.S.C. § 362). On a party in interest's motion, the court may extend the stay as to any or all creditors, subject to conditions, after notice and a hearing completed before the 30-day period expires, only if the later filing is in good faith as to the creditors to be stayed.
What if two or more of my cases were dismissed in the past year?: Section 362(c)(4) applies when a single or joint case under title 11 — any chapter — is filed by or against an individual and 2 or more single or joint cases of that debtor were pending within the previous year but were dismissed. A case refiled under a chapter other than chapter 7 after a § 707(b) dismissal is not counted; excluding it does not defeat the rule if two other qualifying cases remain. No stay goes into effect when the later case is filed (11 U.S.C. § 362). Within 30 days after filing, a party in interest may ask the court to impose the stay as to any or all creditors, subject to conditions; the court may do so, after notice and a hearing, only on a showing of good faith as to the creditors to be stayed. An imposed stay is effective when the order is entered.
Can I use the federal bankruptcy exemption list if I file in Indiana?: Indiana has opted out, so an individual debtor domiciled in Indiana is not entitled to the federal exemptions in 11 U.S.C. § 522(d) (Indiana Code § 34-55-10-1). Which state's law applies is set by § 522(b)(3)(A): the law of the place where your domicile was located for the 730 days immediately preceding filing, or, if it was not in a single state for that period, the place where it was located for the 180 days immediately preceding those 730 days, or for a longer portion of that 180-day period than in any other place. Opting out does not reach other federal exemptions outside § 522(d) or retirement funds exempt from taxation under the listed Internal Revenue Code sections, and if that domicile rule would leave you ineligible for any exemption, § 522 lets you elect the subsection (d) list (11 U.S.C. § 522).
Can my employer charge me for processing the garnishment?: Indiana allows a limited fee. An employer required to make deductions under a garnishment order, or a series of orders arising out of the same judgment debt, may collect the greater of $12 or 3% of the total amount required to be deducted, excluding a judgment for payment of child support (IC 37-2-6-4). Half is borne by you and may be deducted from your disposable earnings; half is borne by the creditor. It may be collected only once for that order or series, may be taken from the initial deductions or ratably over the pay periods, and does not increase the judgment debt for judgment interest. A separate $2 fee applies each time a child support deduction is required, with the support payment reduced if needed to stay within the support limits.
Can I be fired because my wages are being garnished?: No employer may discharge an employee because a creditor has subjected or attempted to subject the employee's unpaid earnings to garnishment or like proceedings to pay a judgment (IC 37-2-6-5). If an employer discharges an employee in violation of that section, the employee may within six months bring a civil action for recovery of lost wages and an order requiring reinstatement, with damages not exceeding lost wages for six weeks (IC 37-2-6-9). Federal law also bars discharge by reason of earnings being garnished for any one indebtedness, with penalties for willful violations (15 U.S.C. § 1674). That remedy addresses firing, not the amount withheld.

Sources

IC 37-2-6-1 — Scope
IC 37-2-6-3 — No garnishment before judgment
IC 37-2-6-4 — Limitation on garnishment; employer's fee
IC 37-2-6-5 — No discharge from employment for garnishment
IC 37-2-6-9 — Effect of violations on rights of parties
IC 37-2-1-0.1 — Recodification of prior law
Indiana Trial Rule 69 — Execution and proceedings supplemental
11 U.S.C. § 301 — Voluntary cases
11 U.S.C. § 362 — Automatic stay · official source
11 U.S.C. § 522 — Exemptions · official source
15 U.S.C. § 1672 — Definitions
15 U.S.C. § 1674 — Restriction on discharge from employment
15 U.S.C. § 1677 — Effect on State laws
Indiana Code § 34-55-10-1 — Exemption system

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Sources verified October 20, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

Turn this into a plan for your exact situation, state, and court.

See My Debt Relief Options→