§ 34-55-8-7 — Order requiring application of property to debt and forbidding transfer; liens; order for placing hold on deposit account; hearing; order releasing hold

Indiana § 34-55-8-7

• Jurisdiction: Indiana
• Title 34: CIVIL LAW AND PROCEDURE
• Art. 55: EXECUTION OF JUDGMENTS
• Ch. 8: Proceedings Supplementary to Execution

Text

(a) Except as provided in subsection (b), after
a hearing of which the judgment debtor has been notified, the court
may order:
(1) any property, income, or profits of the judgment debtor not
exempt from execution or process, in the hands either of the
judgment debtor or of any other person; or
(2) any debt due to the judgment debtor;
to be applied to the satisfaction of the judgment and forbid transfers of
property and choses in action.
(b) If the judgment debtor has failed to comply with an agreed order
in the action, after a hearing of which the judgment debtor has been
notified, the court shall order:
(1) any property, income, or profits of the judgment debtor not
exempt from execution or process, in the hands either of the
judgment debtor or of any other person; or
(2) any debt due to the judgment debtor;
to be applied to the satisfaction of the judgment and forbid transfers of
property and choses in action.
(c) The judge shall order that:
(1) the judgment or execution is a continuing lien upon the
income or profits of the judgment debtor in the hands either of the
judgment debtor or any other person, governmental officer, or
corporation from the date the order is served upon the person,
governmental officer, or corporation indebted to the judgment
debtor to the extent that the lien, together with all similar liens, is
permitted under IC 24-4.5-5-105; and
(2) the court may enforce all orders and decrees in the premises,
by attachment or otherwise.
(d) A court in an action for proceedings supplementary to execution
shall issue an order directing a depository financial institution (as
defined in IC 28-9-2) to place a hold on a deposit account in which the
judgment debtor has an interest, either individually or jointly with
another person, whenever the conditions prescribed under IC 28-9-3-4(d)(1) through IC 28-9-3-4(d)(3) are met. An order issued
under this subsection:
(1) is subject to the limitations as to duration of the restriction and
the amount to be restricted as specified under IC 28-9-4-2; and
(2) may be terminated or modified to reflect valid exemptions of
a depositor that the court has considered.
(e) If an order for the placing of a hold on a deposit account is
issued under subsection (d), a person whose deposit account is affected
may request a hearing from the court on the matter of:
(1) the person's right to claim certain funds in the person's deposit
account as exempt from garnishment; and
(2) whether the hold should be removed by the court.
(f) If a court receives a request for a hearing under subsection (e),
the court shall hold a hearing on the matter within five (5) days
(excluding Saturdays, Sundays, and legal holidays) after the court
receives the request.
(g) If a person whose deposit account is affected by the order issued
under subsection (d) files an affidavit with the court stating that the
funds in the account are exempt from garnishment, the court may issue
an order releasing the hold on the account without first conducting a
hearing.
(h) If a court has issued a garnishment order to a third party and the
garnishment order no longer applies to the third party due to a change
in circumstances, the court may cancel the garnishment order and issue
a new garnishment order to an appropriate third party, if all of the
following conditions are met:
(1) The court has issued a garnishment order under subsection (a)
or (b) with respect to a judgment debtor's income or profits in the
hands of a third party.
(2) The judgment constitutes a continuing lien under subsection
(c).
(3) Due to a change in circumstances, including a change of
employment, the judgment debtor's income or profits are in the
hands of a new third party not named in the garnishment order.
(4) The judgment creditor files a petition:
(A) notifying the court of the matters described in subdivisions
(1) through (3); and
(B) informing the court of the name, address, and other relevant
information concerning the new third party holding the
judgment debtor's income and profits.
A court may issue a new garnishment order under this subsection
without holding a hearing.
[Pre-1998 Recodification Citation: 34-1-44-7.]

Legislative History

As added by P.L.1-1998, SEC.51. Amended by P.L.1-1999, SEC.76; P.L.78-2014, SEC.22.