Can Disability Income Be Garnished in Indiana?

Garnishment occurs when courts grant a creditor or other party owed money permission to take income directly from the debtor's revenue stream to pay back the debt in question. This usually occurs with paychecks, though it can also impact bank accounts and benefits. Answering the question of whether Indiana allows the garnishing of disability income requires taking a look at the state's garnishment laws and types of available disability income.

Indiana Garnishment Procedure

Indiana provides two possible situations for wage garnishment. The first occurs when a creditor or other party owed money sues a debtor and receives permission to garnish in order to cover unpaid debts. Creditors must obtain a writ of garnishment, or official permission to garnish, and present this writ to the proper authority, such as employer or bank. The other type of garnishment permissible in Indiana, known as a Voluntary Wage Assignment, occurs when a creditor and debtor agree upon a deal to garnish wages and sign a contract attesting to this agreement. Indiana grants garnishments on credit card debts, medical debts, debts from contracts such as those signed on cell phones and unpaid taxes, child support and alimony.

Direct Garnishment in Indiana

Direct garnishment occurs when the courts grant permission to take money straight from a revenue stream before that money reaches its recipient. For instance, when an employer garnishes wages, it comes straight from the paycheck, and qualifies as a direct garnishment. In almost all instances, Indiana exempts disability income from direct garnishment. However, according to a pamphlet published by Indiana Legal Services, a nonprofit organization, the state may garnish Social Security Disability benefits to cover unpaid child support payments or debts owed to the government, such as unpaid taxes.

Deposit Account Garnishment

In some instances, such as when wage garnishment proves impossible, Indiana permits the garnishing of deposit accounts through which debtors receive benefits. State and federal laws prohibit the garnishment of many types of benefits received in deposit accounts, including Supplemental Security Income (SSI), all Veterans' benefits, including disability pensions from the military and disability benefits received from other forms of Social Service. If you live in Indiana and feels as though a judge unfairly grants permission to garnish disability income you may seek legal advice and assistance and even file a counter claim.

Additional Information

In most instances, creditors or individuals owed money must sue you in order to obtain permission to garnish. However, because garnishment of disability income in Indiana only proves legal in cases of unpaid child support or debts owed to the government, this is not the case in such instances. Government agencies may directly garnish benefits without suing a debtor and need not obtain any permission to garnish. Despite this, the government must still notify you if it intends to garnish disability income to make up for unpaid debts.