New Law Strengthens Eviction Sealing Protections For Tenants
Starting July 1, Indiana tenants will benefit from significant improvements to the state’s eviction sealing law through Senate Enrolled Act 142 (Public Law 128), which streamlines the process for removing eviction records and expands eligibility for relief.
Automatic Sealing Process
The most significant change is mandatory automatic sealing for certain eviction cases. Going forward, Courts are required to seal eviction records without any action from tenants when:
- Cases are dismissed
- Judgments are entered in favor of the tenant
- Judgments against tenants are overturned or vacated on appeal
This is a major shift from the previous system where tenants had to petition the court for sealing, though some courts were already implementing automatic sealing practices. However, even with this new process, tenants still need to ask the court to seal old cases.
Expanded Eligibility for Paid Judgments
The new law clarifies that tenants who have satisfied their financial obligations can petition for sealing of their eviction records. This includes cases involving judgments for possession, monetary damages, or both. Prior to this legislation, courts across Indiana differed in their interpretation of whether paid judgments qualified for sealing relief.
Seven-Year Sealing Option
The law also allows cases with final orders to be sealed where no money judgment was entered, provided seven years have elapsed since the entry of judgment. This expands the types of cases eligible for sealing beyond those that can be sealed immediately.
Impact on Housing Stability
These changes to the eviction sealing law will help Hoosiers achieve stable housing by reducing barriers created by eviction records, which create significant barriers to safe and secure housing. Legal scholars have described this phenomenon as the “scarlet E” that forever labels a renter a “bad tenant” and limits rental opportunity. Sealed eviction records are not accessible to landlords during tenant screening processes, providing individuals and families with better opportunities for safe and secure housing.
“These improvements to Indiana’s eviction sealing law are a significant step forward in helping tenants move past housing difficulties and access stable housing opportunities,” said Jenny Terry, Senior Attorney at Indiana Legal Services.
“Indiana’s expanded eviction sealing under SEA 142 will help put safe, fair, and affordable housing in reach for thousands of Hoosier households and their communities,” said Andrew Bradley, Senior Director for Policy and Strategy at Prosperity Indiana. “With some of the lowest rates of affordable housing, highest cost burdens, and highest rates of eviction filings in the Midwest, the improvements to Indiana’s eviction sealing law are one of the most significant changes to state housing stability policies in years. Prosperity Indiana and the Hoosier Housing Needs Coalition thank Senator Liz Brown (District 15) for authoring SEA 142, the broad bipartisan majorities in the Indiana General Assembly for passing the bill, and Governor Mike Braun for signing it into law,” Bradley said.
For more information about eviction sealing in Indiana, contact: Jenny Terry at jennifer.terry@ilsi.net
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