SB 197 Indiana Senate · 2026 Regular Session

Garnishment.

Summary

Amends the limitation on garnishment provided in the Uniform Consumer Credit Code. Requires a garnishment order or attachment order that requires an employer to make deductions from a debtor's disposable earnings to provide certain information to the employer. Provides that tangible personal property, including choses in action, deposit accounts, and cash (but excluding debts owing and income owing), of $1,500 is exempt from bankruptcy (current law is $300). Removes provisions in code requiring the department of financial institutions to adopt rules that establish or adjust exemption amounts for purposes of bankruptcy proceedings.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Jan 2026

Senate Passage

Jan 2026

House Passage

Governor

Introduced Jan 6, 2026 Last action Jan 29, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Senate Bill (S) → Senate Bill (H) · 4 edits

MODERATE

This bill was amended to expand its scope beyond just garnishment rules to include requirements for the Department of Financial Institutions to adopt and maintain rules related to bankruptcy exemptions and other financial regulations. The digest was updated to reflect these broader regulatory requirements, and the bill text now includes provisions for rulemaking procedures and expiration timelines for agency rules.

Scope change

The bill's scope expanded from solely addressing garnishment limitations to also requiring the Department of Financial Institutions to adopt and maintain rules governing bankruptcy exemptions, consumer credit code adjustments, and high-cost home loan adjustments.

REQUIREMENT

Added requirements for the Department of Financial Institutions to adopt rules under interim procedures announcing changes to dollar amounts in the Uniform Consumer Credit Code, bankruptcy exemptions, and high-cost home loan adjustments.

Added provision requiring garnishment or attachment orders to provide certain information to employers making deductions from a debtor's disposable earnings.

TIMELINE

Established expiration timelines for agency rules, with interim rules expiring by January of the next odd-numbered year and emergency rules expiring within two years.

TECHNICAL

Updated bill citations from IC 24-4.5-5-105 and IC 34-55-10-2 to include IC 4-22 and broader references to noncode provisions, reflecting the expanded regulatory scope.

Floor votes · Senate Jan 27, 2026

How they voted

31–13

Passed · 4 other

Total votes 48

Jan 27, 2026

D Democratic9

7 Yea 2

77% Yea

R Republican39

24 Yea 13 Nay 2

61% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 27, 2026

Upper · Passed

Third reading: passed; Roll Call 104: yeas 32, nays 13

upper

Jan 22, 2026

Upper · Passed

Committee report: amend do pass, adopted

upper

3 primary · 5 co-sponsors