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Senate panel weighs raising garnishment protections; bill held for negotiation

Insurance and Financial Institutions Committee · January 14, 2026
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Summary

Senate Bill 197 would raise wage and bank garnishment exemptions to give struggling Hoosiers more breathing room. Legal aid, creditors and lenders offered competing testimony about household stability versus credit costs; the sponsor said he is open to adjusting figures and the committee held the bill for further intersession work.

Senate Bill 197, introduced by Senator Walker, drew a large group of witnesses on both sides of proposed changes to wage and bank garnishment exemptions. The bill seeks to update longstanding garnishment floors that sponsors and advocates argue are outdated and leave working families vulnerable to eviction, utility shutoffs and other harms.

John Bingle of Indiana Legal Services described client…

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