For many Hoosiers, a single financial setback, a medical emergency, a layoff, a cutback in hours, or a car repair bill can trigger a cascade of consequences that lasts for years. When that setback leads to an eviction filing, it creates what housing advocates call the “Scarlet E”: a permanent mark on someone’s record that can make securing stable housing nearly impossible, even when the eviction was unjust, or the tenant ultimately prevailed in court. Last month, we examined some of the inhumane practices employed by some Hoosier landlords, who often use evictions as a secondary revenue stream, completing the process in some cases in as little as five days, and extorting funds from already cost-burdened renters.
The statistics paint a sobering picture. According to testimony from Andrew Bradley of Prosperity Indiana, over 71,000 evictions were filed in Indiana during the past year, and the state has one of the highest eviction rates in the country. Each filing, regardless of its outcome (settled in court but not removed from the record, or due to extenuating circumstances), has traditionally remained visible to potential landlords during background checks, creating a firm barrier that pushes vulnerable families further into housing insecurity.
The Lasting Impact of Eviction Records
The consequences of having an eviction record are far-reaching and impact multiple areas of one’s life; it is so much more than simply finding a new place to live. Having an eviction record creates barriers to securing and maintaining stable housing. We know that stable housing is key to preserving mental and physical health, gaining access to jobs, and a reliable income. Furthermore, when housing impacts employment, it has a knock-on effect, often increasing food insecurity and perpetuating cycles of poverty across generations.
David Pruitt, director of Notre Dame’s Clinical Law Center, said in an Indiana Chronicle interview, “A majority of the eviction clinic’s cases stem from just ‘one incident’ in a renter’s life. ‘There’s a medical bill, or a loss of a job, or something comes up, and the margins are so thin for people that they get knocked off track, and it’s hard for them to come up,’ Pruitt said.”
Simply put, these are not irresponsible individuals. With the price of rent already high and rising, and a lack of other affordable rental options, a single financial setback can mean financial ruin for the renter. This situation is likely to persist for years to come.
Even when tenants successfully fight their eviction in court or when landlords dismiss cases, these filings remain visible, making it difficult for individuals to find housing and pushing them into substandard rental situations. The mark of eviction or the “Scarlet E” is often an insurmountable barrier in securing a safe and stable living environment going forward.
Indiana’s Affordable Housing Crisis
The impact of eviction records is particularly devastating in Indiana due to our severe affordable housing shortage. According to Prosperity Indiana and the Hoosier Housing Needs Coalition, the state has just 38 affordable rental homes available for every 100 extremely low-income Hoosier households. This is not just an urban problem or a rural problem; this is a state-wide issue that we see every day, even in La Porte County. When eviction records eliminate even more housing options for those who need them most, the path to becoming unhoused becomes dangerously short.
In Indiana, eviction rates have increased while the availability of affordable housing has declined, and high eviction rates are leading factors contributing to high rates of unhoused individuals and families. Unhoused families are the largest population and fastest-growing segment of the unhoused population in our state. For low-income renters already struggling to find affordable options, an eviction record, even from a case they won, can mean the difference between housing stability and homelessness.
How Tenant Screening Creates Barriers
The role of tenant screening companies has amplified the impact of eviction records. These companies market their services to landlords as essential tools for finding reliable tenants, but their business model relies heavily on flagging any eviction history. Many landlords automatically reject applicants with any eviction record, regardless of the circumstances or outcome of the case. In many cases, these services rely on AI to screen tenants, and a human being often never actually reviews the flagged tenants because the computer system has weeded them out. In this system, there is no room for context, understanding, or compassion.
By repackaging these eviction records and selling them to landlords as a key to finding good renters, tenant screening companies have helped entrench eviction records as an enduring barrier to housing. This means that even when someone has the money to pay rent, including through rental assistance or housing vouchers, they can still be denied housing because of a past eviction filing.
Federal efforts have recognized this crisis. In 2021, HUD launched the Eviction Protection Grant Program, a first-of-its-kind federal program designed to expand the reach of legal services to low-income tenants at risk of or subject to eviction. The program notes that millions of families face eviction each year, and those evicted tenants, especially children, face significant long-term consequences.
A New Path Forward: Indiana’s Eviction Sealing Law
On May 1, 2025, Governor Braun signed Senate Bill 142 into law, representing a significant victory for housing advocates and a lifeline for thousands of Indiana renters. The new law provides for automatic sealing when an eviction case is dismissed and clarifies that tenants who pay off judgments in their eviction cases are eligible to have those cases sealed. The law took effect on July 1, 2025.
This legislation resulted from extensive collaboration among housing advocates, legal aid organizations, and lawmakers. Notre Dame Law School students in the Eviction Clinic, along with the Indiana Justice Project, co-authored a white paper that analyzed legal issues surrounding eviction records and expungement and crafted recommendations to improve Indiana’s eviction sealing process.
What the Law Does
The new law streamlines the eviction sealing process in several important ways:
Automatic Sealing for Dismissed Cases: Courts can now expunge eviction records when a case is dismissed or when a judgment is entered against the tenant and subsequently overturned or vacated on appeal. This means that tenants who successfully defended against eviction or had their cases dismissed won’t need to take additional legal action to seal these records.
Sealing After Payment: Tenants who had money judgments against them but have since paid them off can now have their eviction records sealed as well. Previously, even after making things right financially, these records would continue to haunt renters indefinitely.
Seven-Year Relief: Renters can seek expungement seven years after the conclusion of a case in which no money was owed to the landlord, providing a pathway for those whose past eviction filings continue to block housing opportunities.
Why This Matters for Hoosiers
Andrew Bradley of Prosperity Indiana emphasized that affordable housing stakeholders often find that Hoosiers don’t qualify for affordable rental housing because they have a “Scarlet E” on their record due to an eviction filing. With 71,000 evictions filed annually in Indiana, this new law could help a significant number of Hoosiers qualify for safe, decent, affordable housing.
Moving Forward
While Indiana’s new eviction sealing law represents significant progress, housing advocates emphasize that more work remains. The law doesn’t eliminate all eviction records; those where tenants still owe money will remain visible.
However, for thousands of Hoosiers who have faced eviction proceedings, particularly those who successfully fought their cases or who have since resolved their debt, this law offers a fresh start. It recognizes that a single financial crisis shouldn’t permanently define an individual’s ability to secure safe, stable housing for themselves and their families.
Thousands of Hoosiers who have eviction cases dismissed each year will have an easier time finding housing due to this new law. For families living with limited income, where one setback can trigger a downward spiral, this legislation presents an opportunity to break that cycle and secure housing stability.
The path from housing insecurity to stability is challenging, but Indiana’s new eviction sealing law removes one significant barrier. While many barriers remain in our community and state for affordable housing, this is one step towards stability. For Hoosiers who have faced eviction, it offers not just a legal remedy, but a path forward, and that one unexpected financial hardship won’t forever prevent them from accessing the safe, affordable housing every family deserves.
