Indiana Debt Collection Laws 2026: A 6-year SoL but a 20-year judgment — why you must fight before judgment

Indiana gives most consumer debt a moderate six-year Statute of Limitations, but once a creditor wins a judgment that judgment lasts twenty years — one of the longest enforcement windows in the country — and is renewable. In Indiana, the difference between raising your defenses before judgment and ignoring the lawsuit is the difference between a debt that quietly expires and one that can follow you for two decades.

Statute of Limitations by debt type in Indiana

Critical: the clock starts on the date of last payment or first missed payment depending on contract terms. Always verify the exact date of last payment before making assumptions about SoL status — getting this wrong can mean losing your defense.

Indiana's 6-year SoL and the 20-year judgment trap

Indiana's Statute of Limitations is relatively straightforward for consumers. Under Ind. Code § 34-11-2-7, "actions on accounts and contracts not in writing" must be filed within six years, and Indiana case law treats credit card debt as an unwritten/open account in this category. Written contracts executed after August 1982 carry the same six-year limit under § 34-11-2-9, and medical debt also falls under the six-year window. So for almost all consumer debt the rule is simple: six years from your last payment or default. As in most states, a voluntary partial payment can restart that six-year clock, so do not pay anything on an old Indiana debt until you know where it stands.

The real Indiana story, though, is what happens after a judgment. Under Ind. Code § 34-11-2-12, a judgment in Indiana is enforceable for twenty years, and a creditor can move to renew it before it expires. Twenty years is far longer than the judgment lifespan in many states (compare Tennessee's 10 years). During those twenty years a judgment creditor can garnish wages, levy bank accounts, and attach property liens, and the judgment keeps accruing post-judgment interest the whole time. A default judgment entered against you in your thirties can still be collectible in your fifties.

This long enforcement window changes the strategy. Because the SoL defense disappears the moment a judgment is entered, the single most important thing an Indiana consumer can do is respond to the lawsuit and raise every available defense — statute of limitations, lack of standing, failure to prove the chain of ownership of the debt — before a default judgment locks in a twenty-year obligation. Ignoring an Indiana debt summons is the most expensive mistake you can make.

One developing bright spot: Indiana has moved to tie certain medical-debt collection to hospital price-transparency compliance. Reporting on recent 2026 legislation indicates that where a hospital failed to follow state price-transparency rules, neither the hospital nor a collector may pursue that specific medical debt. This is a new and evolving area — confirm the current status of the law and your hospital's compliance before relying on it — but it is a genuinely new tool for Indiana patients fighting medical bills.

Indiana wage garnishment, exemptions, and bank levy

Indiana allows wage garnishment after a judgment, capped at the federal limit: the lesser of 25% of your disposable earnings or the amount exceeding 30 times the federal minimum hourly wage. Only one wage garnishment can run at a time in Indiana, and your employer cannot fire you because of a single garnishment.

Indiana's exemptions (Ind. Code § 34-55-10-2, adjusted periodically) include a homestead exemption of roughly $22,750 in equity in your primary residence and a separate wildcard exemption that can shield a limited amount of cash, bank funds, and other personal property. Because these figures are adjusted for inflation, confirm the current amounts before relying on them.

Always-protected income: Social Security, SSI, VA benefits, and federal pensions remain exempt from garnishment regardless of Indiana law. Note that independent-contractor (1099) earnings are not "wages" for garnishment purposes, so creditors typically pursue a non-wage garnishment against a bank account instead — which is why 1099 workers facing a judgment should be especially careful about where they hold deposits.

How to respond if sued in Indiana (6 steps)

Indiana courts will NOT automatically dismiss time-barred lawsuits. You must affirmatively raise the Statute of Limitations defense in your written Answer or it is waived.

Finding legal help in Indiana

Many Indiana consumer protection attorneys take debt defense cases on contingency or no-upfront-fee basis. They earn fees by winning damages against collectors or by saving you the judgment amount. Free initial consultations are common.

Frequently asked questions

What is the Statute of Limitations on debt in Indiana?

In Indiana, the SoL on most consumer debt depends on the type. Written contracts (credit cards with a signed agreement, promissory notes) have a 6-year SoL. Open accounts and oral contracts have a 6-year SoL. Medical debt: 6 years. Court judgments: 20 years. Legal source: Ind. Code § 34-11-2-7 and § 34-11-2-9 (6-year SoL). The clock starts on the date of last payment or default.

How long can creditors sue me for credit card debt in Indiana?

It depends on classification. If the collector can produce the original signed cardholder agreement, the 6-year written contract SoL applies. If they cannot — common for debts sold to debt buyers — the debt may be classified as an open account with a 6-year SoL. This means document discovery (demanding the signed agreement) is the most important defense strategy. Indiana courts have generally held that the burden is on the plaintiff to prove which SoL applies.

What restarts the Statute of Limitations in Indiana?

In Indiana, the SoL can be restarted by: (1) making any payment on the debt, even one dollar; (2) written acknowledgment of the debt signed by the debtor; (3) written promise to pay; (4) new charges on an open account. Indiana follows the traditional rule: a voluntary partial payment can restart the six-year SoL, so avoid paying on an old debt until you confirm its age. CRITICAL: never make a payment or sign anything related to old debt without first verifying the date of last payment and consulting a consumer attorney. A single dollar can give the collector another 6 years to sue.

Can Indiana creditors garnish my wages for credit card debt?

Yes, with limits set by state law.

What is the DCSA and how does it protect me?

The Indiana Deceptive Consumer Sales Act (DCSA) and collection agency licensing law provides Indiana-specific consumer protections that work alongside federal FDCPA. Legal source: Ind. Code § 34-11-2-7 and § 34-11-2-9 (6-year SoL); § 34-11-2-12 (20-year judgment); § 24-5-0.5 (DCSA); § 25-11-1 et seq. (collection licensing). Successful claims under these statutes typically include actual damages, statutory damages or multipliers, and attorney fees — making it economically viable for consumer attorneys to take cases on contingency. Violations include filing on time-barred debt, misrepresenting debt status, threatening unlawful actions, and harassment.

How do I respond if I am sued for old debt in Indiana?

You have 20 days (Indiana Trial Rule 6(D) requires a response within twenty days after you are served with the summons and complaint) from being served to file an Answer. Indiana courts will NOT automatically dismiss time-barred lawsuits — you must affirmatively raise the SoL as an affirmative defense in your written response. State specifically: "Plaintiff's claim is barred by the Statute of Limitations under Ind. Code § 34-11-2-7 and § 34-11-2-9 (6-year SoL)." Also demand the collector produce: original signed credit agreement (critical for 6 vs 6 year SoL determination), complete payment history, chain of title proving they own the debt, and proof of last payment date.

How long are court judgments enforceable in Indiana?

Indiana court judgments are valid for 20 years and can typically be renewed before expiration. During this time, the creditor can attempt to collect through wage garnishment, bank account levies, property liens (subject to homestead exemption), and other post-judgment remedies. Indiana judgments accrue post-judgment interest at the statutory rate. Critical: respond to ANY debt collection lawsuit within the 20 days (Indiana Trial Rule 6(D) requires a response within twenty days after you are served with the summons and complaint) answer period — a default judgment converts unenforceable time-barred debt into a 20-year collection nightmare.

What is the Indiana medical debt Statute of Limitations?

Medical debt in Indiana is generally subject to the 6-year SoL for written contracts (assuming the hospital can produce signed treatment consent and financial responsibility forms). Many medical debt cases are dismissed when hospitals cannot produce these documents for old accounts. Note: under recent CFPB rule changes (2025), medical debt under $500 cannot appear on credit reports — but this does not change the SoL for collection lawsuits.

Are federal student loans subject to the Indiana Statute of Limitations?

No. Federal student loans (Direct Loans, FFEL Program loans, Perkins Loans) have NO statute of limitations under federal law per the Higher Education Technical Amendments of 1991. They can be collected indefinitely through wage garnishment, tax refund offsets, and Social Security garnishment. Private student loans are subject to Indiana's 6-year written contract SoL. Federal loan rehabilitation, consolidation, or income-driven repayment plans can resolve default status.

What can debt collectors NOT do in Indiana?

Under DCSA and federal FDCPA, debt collectors in Indiana cannot: (1) Use threats of violence or criminal action; (2) Use obscene or profane language; (3) Misrepresent the amount, character, or legal status of the debt; (4) Threaten action they cannot legally take; (5) Call before 8 AM or after 9 PM local time; (6) Call you at work after you have told them to stop; (7) Falsely claim to be attorneys or law enforcement; (8) Communicate with third parties about your debt (narrow exceptions only). Violations can result in statutory damages, actual damages, and attorney fees.

Should I hire a Indiana consumer protection attorney?

Strongly recommended for debt collection lawsuits, especially given Indiana's consumer protection statutes. Indiana has consumer protection attorneys who specialize in FDCPA and DCSA litigation, often taking cases on contingency. Resources: Indiana Legal Services, Indiana State Bar Find a Lawyer, County pro bono districts (Indiana), Indiana AG Consumer Protection Division, and the National Association of Consumer Advocates (consumeradvocates.org). Many attorneys offer free initial consultations to evaluate your case.

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