Indiana Statute of Limitations on Debt: What You Need to Know
Indiana gives creditors six years to sue for most debts including credit cards, medical bills, and personal loans. Mortgages have a ten year limit, while court judgments last 20 years. Making payments or acknowledging old debts can restart the clock, so verify the last activity date before taking action.
Answer Your LawsuitIndiana law protects you from lawsuits over old debts. Creditors and debt collectors face strict deadlines to take legal action. Once these deadlines pass, they lose the right to sue you.
The statute of limitations on credit card debt in Indiana is six years. Different debt types have different time limits. Understanding these rules can help you respond effectively to debt collectors.
Respond to Your Indiana Debt Lawsuit in Minutes
Don't let debt collectors win by default. Use the expired statute of limitations as your defense and protect your rights in court.
Draft Your Answer NowHow the Statute of Limitations Works in Indiana
When you owe money, creditors have a limited time to sue you. The clock starts ticking from your last payment or default date. Indiana sets different deadlines based on your debt type.
Written contracts generally have a six to ten year limit. Oral contracts have a six year period. The type of agreement determines which timeline applies to your situation.
After the statute expires, collectors can still contact you about the debt. However, they cannot successfully sue you in court. You must raise this defense in your response to any lawsuit.
Statute of Limitations by Debt Type in Indiana
| Debt Type | Time Limit |
|---|---|
| Credit Card | 6 years |
| Medical | 6 years |
| Student Loan | 6 years |
| Auto Loan | 6 years |
| Personal Loan | 6 years |
| Mortgage | 10 years |
| Judgment | 20 years |
Indiana Debt Collection Laws Explained
Indiana Code §34-11-2-7 covers unwritten contracts and rental debts. Collectors have six years to file lawsuits on these debts. Credit card debts fall into this category in most cases.
Section §34-11-2-9 addresses written contracts for money. Debts from contracts after August 31, 1982 have a six year limit. Older contracts have a ten year statute of limitations.
Mortgages and other non-monetary written contracts fall under §34-11-2-11. These debts have a ten year collection period. Real estate recovery actions also follow this timeline.
Real World Example
LVNV Funding bought Ted’s old credit card debt from the original creditor. They filed a lawsuit after multiple collection attempts failed. Ted discovered his debt was seven years old.
He raised the expired statute of limitations in his Answer document. Our partner Solo helped him prepare his court response. LVNV Funding voluntarily dismissed the case after reviewing his defense.
When the Statute of Limitations Restarts
Making a payment can restart the clock on your debt. Written acknowledgment of the debt has the same effect. Indiana Code 34-11-3-1 governs these situations.
The law states the cause of action accrues from the last transaction. Even a small payment resets the entire timeline. You must be careful about acknowledging old debts.
Before making any payment, check your last account activity. If more than six years have passed, the debt may be uncollectible. Don’t accidentally give collectors new legal rights.
Court Judgments Last Much Longer
Once a creditor wins a judgment, the rules change dramatically. Judgments in Indiana are enforceable for 20 years. Creditors can renew them before expiration for another 20 years.
Active judgments allow aggressive collection methods. Collectors can garnish your wages and seize bank accounts. They can take property and force you to court examinations.
When judgments become dormant, collectors lose these powers. They must act within specific timeframes to keep judgments active. Lapsed judgments cannot be used for collection activities.
Understanding Acceleration Clauses
Collins Asset Group v Alkhemer Alialy demonstrates how acceleration affects timing. The defendant defaulted on a 2007 mortgage in 2008. The debt collector accelerated the debt in 2016.
The borrower argued the six year statute had expired. The court disagreed because acceleration restarted the clock. The plaintiff filed suit within six years of acceleration.
Acceleration clauses can extend collection rights significantly. Courts calculate the statute from acceleration, not original default. Understanding these clauses protects you from surprise lawsuits.
How to Respond to Debt Lawsuits in Indiana
You must file an Answer to defend against debt collection lawsuits. Include the expired statute of limitations as an affirmative defense. Courts won’t raise this defense automatically for you.
Indiana provides other protections under state debt collection laws. Collectors must follow strict rules when contacting you. You have rights that limit harassment and unfair practices.
Our partner Solo helps you draft professional court responses quickly. The service creates personalized Answer documents in minutes. You can assert all applicable defenses in your response.
Filing an Answer protects your rights and forces collectors to prove their case. Many lawsuits get dismissed when debtors respond properly. Don’t ignore court papers, even for old debts.
Settlement Options Before Court
If your debt is within the statute of limitations, consider settling. Negotiation often results in reduced payment amounts. Creditors may accept less than you owe to avoid court costs.
Get any settlement agreement in writing before making payments. Confirm the creditor will report the debt as settled. Protect yourself with clear documentation of all terms.
Settlement saves time and reduces stress compared to litigation. You avoid court appearances and potential judgments. Many collectors prefer guaranteed partial payment over uncertain court outcomes.
Protecting Yourself from Old Debt Claims
Document all communications with debt collectors carefully. Keep records of payment dates and amounts. Save letters, emails, and notes from phone conversations.
Request debt validation when collectors first contact you. They must prove they own the debt and the amount is correct. Validation requests buy you time to research the statute of limitations.
Never admit the debt is valid if you have questions. Avoid making payments on debts you don’t recognize. Check the last activity date before taking any action.
Know your rights under Indiana and federal law. Collectors cannot threaten you with actions they cannot legally take. Report violations to the Consumer Financial Protection Bureau.