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Senate Considers Bill To Make Debt Collection Easier

By Network Indiana

Posted March 10, 2015

Indiana House Bill 1358, which would allow the state to take or reduce a person's state tax return to settle a garnishment, is working its way through the Senate. The bill has already been approved in the House and heard testimony in front of the Senate Civil Laws committee on Monday.

Rep. Casey Cox, R-Fort Wayne, authored the bill and says the measure makes it easier for debt collectors to have access to an individual's funds.

The process through which collectors make that happen would be the same as any other debt collection process and debtors would be notified before anything was taken.

Brian Burdick with Barnes and Thornburgh says the bill makes it easier for debt collectors to keep accounts moving in the right direction.

"They could do that today, go after your bank accounts, your real property up to a level, I mean it's all out there," Burdick says. "Let's not forget this is a judgment debtor, somebody that owes something here, but it's in a creditors interest to make sure they can continue to make progress."

Still up for debate are parts of the bill that refer to non-obligated spouses, or spouses who filed jointly but aren't responsible for the debt.

Cox says the bill will also help the Department of Revenue by increasing revenue and offsetting costs.

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Senate Considers Bill To Make Debt Collection Easier

By Network Indiana

Posted March 10, 2015

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