What Property Is Exempt From Creditors in Indiana?

In Indiana, the core list of property a judgment creditor cannot seize is set out in one statute: Indiana Code section 34-55-10-2. As of 2026 it protects roughly the first $19,300 of equity in the home you use as your residence, a separate pool of about $10,250 in other tangible personal property (the category that covers your car and household goods), and about $400 in intangible personal property such as cash in a bank account. Indiana law requires these dollar amounts to be adjusted for inflation every two years, so the figures creep upward over time. Before you rely on a specific number, confirm the current adjusted amount, because the statute itself directs the state to recalculate it.

That biennial-adjustment feature is what makes Indiana different from many states that freeze their exemption dollar figures for decades. Indiana also takes an unusual approach to vehicles and furniture: it has no dedicated motor-vehicle exemption and no separate household-goods exemption. Instead, both come out of the same general tangible-personal-property allowance. Understanding how these buckets work is the key to protecting what you own when a creditor wins a judgment and tries to collect.

The Indiana homestead (residence) exemption

Indiana protects equity in the real estate or personal property you use as your personal or family residence up to a statutory cap that, as of 2026, is in the range of $19,300. This is your equity protection, not the home's value, so it shields the difference between what your home is worth and what you still owe on the mortgage. If a married couple owns the home together as tenants by the entireties, Indiana gives additional protection: property held by the entireties generally cannot be reached by a creditor of only one spouse, which is a powerful shield for debts that belong to just the husband or wife.

The residence exemption does not stop a mortgage lender or a property-tax authority, and it does not stop a contractor with a properly perfected mechanic's lien. It protects you from a general unsecured judgment creditor, such as a credit-card company or medical-debt collector, not from a creditor whose debt is secured by the home itself.

Wages and the garnishment cap

Indiana does not let a judgment creditor take your entire paycheck. The state follows the federal Consumer Credit Protection Act limit and, under Indiana Code 24-4.5-5-105, caps a garnishment at the lesser of 25 percent of your disposable earnings for the week, or the amount by which your disposable earnings exceed 30 times the federal minimum wage. Disposable earnings means what is left after legally required deductions like taxes and Social Security.

Because Indiana's minimum wage as of 2026 is $7.25 per hour, the same as the federal floor, the protected weekly amount works out to 30 times $7.25, which is $217.50. Earnings below that floor cannot be garnished at all by an ordinary creditor. Confirm the current federal minimum wage before doing the math, since the calculation is tied to that rate. Different and higher limits apply to child support, spousal support, and certain tax and student-loan debts, which can reach a larger share of your pay. Only one ordinary creditor garnishment can run at a time in Indiana, so a later judgment creditor generally has to wait its turn.

Retirement accounts and pensions

Retirement money receives strong protection. Employer plans governed by the federal ERISA law, such as most 401(k) and traditional pension plans, are generally beyond a creditor's reach because of federal anti-alienation rules. Indiana Code 34-55-10-2 separately exempts your interest in tax-qualified retirement plans and individual retirement accounts (IRAs), and Indiana protects public-employee and teacher pension benefits by statute. The protection follows the money so long as it stays in the retirement account; once you withdraw funds and deposit them into an ordinary checking account, they can lose that retirement character and may be exposed to a levy.

Public benefits: Social Security, unemployment, and more

Several categories of income are off-limits regardless of the dollar amount. Social Security and Supplemental Security Income are protected by federal law under Section 207 of the Social Security Act, which says these benefits cannot be assigned or attached. Federal banking rules also require a bank that receives a garnishment order to automatically protect up to two months of Social Security or other federal benefit payments that were direct-deposited into your account.

Indiana law adds its own protections. Unemployment compensation benefits are exempt under Indiana's unemployment statute, workers' compensation benefits are exempt, and public assistance is protected. Many of these protected funds keep their exempt status even after they land in your bank account, but you may have to prove the source of the money to stop a levy, which is why keeping deposit records matters.

Your car and household goods

Indiana does not have a stand-alone car exemption or a separate exemption for furniture, appliances, and clothing. Instead, all of this falls under the general tangible-personal-property allowance, which as of 2026 is in the range of $10,250. You can apply that allowance to whatever tangible property matters most to you, including the equity in a vehicle, your household furnishings, tools, electronics, and similar items. If your equity in everything you want to protect fits within that figure, a creditor generally cannot take it.

Because this is a single shared pool, a paid-off car worth more than the allowance could leave some equity exposed, while household goods, which usually have little resale value, rarely use up much of the allowance. Health aids that you need are separately exempt without a dollar limit, and certain other items such as some life-insurance proceeds and specific public-safety pensions have their own protections under Indiana law.

How to claim your exemptions against a judgment or bank levy

Exemptions in Indiana are not always automatic; you usually have to assert them. After a creditor obtains a judgment, it collects through a court process called proceedings supplemental to execution. You will typically receive notice of a garnishment or a bank levy, and that notice should explain your right to claim exemptions. To protect exempt property, file a written claim of exemption with the same court that issued the judgment, identify the specific property or funds and the statute that protects them, and ask the court to release the property. Act quickly, because once a deadline to object passes, frozen funds can be turned over to the creditor.

If your bank account holds protected money such as Social Security, unemployment, or wages already subject to the garnishment cap, say so clearly in your claim and attach proof of the source, such as benefit-award letters or bank statements showing the deposits. The court can hold a hearing and order exempt funds returned. Because the dollar figures adjust every two years and the deadlines are short, many Indiana consumers consult a legal-aid organization or a consumer attorney before responding.

Where to verify and get help

For the exact current exemption amounts and your collection rights, the authoritative source is the Indiana Code itself, especially section 34-55-10-2 for property exemptions and section 24-4.5-5-105 for wage garnishment. For consumer-protection questions and to report abusive collection practices, contact the Indiana Attorney General's Consumer Protection Division, which handles complaints against debt collectors and creditors operating in the state. On the federal side, the Fair Debt Collection Practices Act (FDCPA) limits how third-party collectors can contact you, the Fair Credit Reporting Act (FCRA) governs how debts appear on your credit report, and the federal 25 percent wage-garnishment cap and Social Security anti-attachment rule set the floor that Indiana law builds on. When the stakes are your home, your paycheck, or your benefits, verify the current figures with the official state source before you act.

Official Indiana Sources

This page is based on Indiana law. Limits and deadlines change — verify the current details directly with the official Indiana sources below. This is general legal information, not legal advice.

• Indiana Attorney General - Consumer Protection Division — official Indiana agency.
• File a Complaint - Indiana Attorney General Consumer Protection Division

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Indiana’s own rules.