Common Exemptions For Judgment Debtors
A. Income
Exemption | Amount | Authority |
Wages, commissions, income, rents or profits | $217.50 after taxes per rents or profits week or 75%, whichever is greater (court may increase up to 90% if good cause shown) | I.C. § 24-4.5-5-105 |
Social Security and SSI | 100% | 42 U.S.C. § 407 |
Veterans’ Benefits | 100% | 38 U.S.C. § 5301 |
Unemployment Compensation | 100% | I.C. § 22-4-33-3 |
Workers’ Compensation | 100% | I.C. § 22-3-2-17 |
B. Property
Exemption | Amount | Authority |
Residence (real or personal property) | $22,750 per person | I. C. § 34-55-10-2(c)(1) |
Real estate owned jointly by married couple (entireties) | 100% if only one spouse is debtor | I. C. § 34-55-10-2(c)(5) |
Non-residential real estate & tangible personal property | $12,100 per person | I. C. § 34-55-10-2(c)(2) |
Intangible property (e.g. cash, bank acct.) | $450 per person | I. C. § 34-55-10-2(c)(3) |
Tax refunds (Federal and Indiana) Earned income credit | 100% of EIC | I. C. § 34-55-10-2(c)(11) |
Notes:
- These are the most common exemptions that arise in consumer collection and other civil lawsuits. Other federal and Indiana exemptions may apply to specific types of income and property. Some of these are listed on page 2.
- The dollar amounts for the Indiana property exemptions are subject to adjustment every 6 years. The next adjustment will be in 2028. See 750 I.A.C. § 1-1-1.
- Different wage exemptions apply to support withholding orders. I.C. 24-4.5-5-105(3).
- Support withholding takes priority over civil wage garnishment. I.C. 24-4.5-5-105(8).
- Federal and Indiana benefit exemptions have exceptions for child/spousal support claims
Miscellaneous Exemptions For Judgment Debtors
A. Income
Exemption | Amount | Authority |
Railroad Retirement | 100% | 45 U.S.C. § 231m |
Child support received | 100% | Warsco v. Hambright (Ind. 2002), 762 N.E.2d 98 |
B. Property
Exemption | Amount | Authority |
Child support arrearage due | 100% | Warsco v. Hambright (Ind. 2002), 762 N.E.2d 98 |
Pension, IRA, 401(k) (tax deferred) | Generally exempt (Limits may apply) | I. C. § 34-55-10-2(c)(6) |
Public Employees Retirement | 100% | I. C. § 5-10.3-8-9 |
Teachers’ State Retirement | 100% | I. C. § 5-10.4-5-14 |
Federal student loan proceeds | 100% | 20 U.S.C. § 1095a(d) |
Education Savings Account | Limits apply | I. C. § 34-55-10-2(c)(10) |
Qualified Tuition Program | Limits apply | I. C. § 34-55-10-2(c)(9) |
Group life insurance/proceeds | 100% | I. C. § 27-1-12-29(b) |
Life insurance payable to spouse or dependent | 100% | I. C. § 27-1-12-14(e) |
Medical care accounts | 100% | I. C. § 34-55-10-2(c)(7) |
Health savings accounts | 100% | I. C. § 34-55-10-2(c)(8) |
Professionally prescribed health aids | 100% | I. C. § 34-55-10-2(c)(4) |
Prepared By: Indiana Legal Service, Inc.
Revised: June 16, 2023