Indiana debt statute of limitations

Indiana limitation periods by type of debt

Written contracts for the payment of money are 6 years (§ 34-11-2-9); accounts not in writing are also 6 years (§ 34-11-2-7).

What the Indiana statute says

“an action upon promissory notes, bills of exchange, or other written contracts for the payment of money executed after August 31, 1982, must be commenced within six (6) years after the cause of action accrues.”
Ind. Code § 34-11-2-9(b)

“The following actions must be commenced within six (6) years after the cause of action accrues: (1) Actions on accounts and contracts not in writing.”
Ind. Code § 34-11-2-7(1)

“an action upon contracts in writing other than those for the payment of money, and including all mortgages other than chattel mortgages, deeds of trust, judgments of courts of record, and for the recovery of the possession of real estate, must be commenced within ten (10) years after the cause of action accrues.”
Ind. Code § 34-11-2-11(a)

Does paying restart the clock in Indiana?

An acknowledgment or promise extends the time to sue only if it is in writing and signed (Ind. Code § 34-11-9-1; § 34-11-9-3).

“An acknowledgment or promise is not evidence of a new or continuing contract, for the purpose of taking the case out of the operation of this article, unless the acknowledgment or promise is: (1) in writing; and (2) signed by the party to be charged by the acknowledgment or promise.”
Ind. Code § 34-11-9-1; § 34-11-9-3

Indiana’s own debt collection law

Indiana's collection agency law (Ind. Code ch. 25-11-1) requires collection agencies operating in Indiana to be licensed and to account for and remit money they collect; it is mainly a licensing law.

“It is unlawful for any person to conduct, within this state, a collection agency without first having applied for and obtained a license under the provisions of this chapter.”
Ind. Code § 25-11-1-7

If a creditor wins a judgment in Indiana

The statute of limitations is a defense to the lawsuit. If the creditor sues within the deadline and wins — or wins by default because nobody answered — different Indiana rules take over.

How long a judgment lasts

In Indiana, every judgment of a court of record is considered satisfied after twenty years.

“Every judgment and decree of any court of record of the United States, of Indiana, or of any other state shall be considered satisfied after the expiration of twenty (20) years.”
Ind. Code § 34-11-2-12

Wage garnishment

Indiana limits wage garnishment on judgments to the lesser of 25% of weekly disposable earnings (which a court may reduce to between 10% and 25% on the debtor's showing of good cause) or the amount above 30 times the federal minimum hourly wage; this rule was recodified in 2026 from IC 24-4.5-5-105 to IC 37-2-6-4.

“An amount equal to twenty-five percent (25%) of the individual's disposable earnings for that week or, upon a showing of good cause by the individual why the amount should be reduced, an amount equal to: (A) less than twenty-five percent (25%); and (B) at least ten percent (10%); of the individual's disposable earnings for that week.”
Ind. Code § 37-2-6-4(b) (formerly Ind. Code § 24-4.5-5-105, recodified by P.L.115-2026)

Money in a bank account

An Indiana-domiciled debtor may exempt intangible personal property including deposit accounts and cash up to the amount in § 34-55-10-2(c)(3) ($300 in the statutory text); that amount is adjusted every six years by Department of Financial Institutions rule under § 34-55-10-2.5, so the figure in effect is set by rule and may be higher.

“Intangible personal property, including choses in action, deposit accounts, and cash (but excluding debts owing and income owing), of three hundred dollars ($300).”
Ind. Code §§ 34-55-10-2(c)(3), 34-55-10-2.5

Small claims court

An Indiana superior court small claims docket hears civil actions seeking no more than $10,000 (a party may waive any excess to fit within the limit).

“Civil actions in which the amount sought or value of the property sought to be recovered is not more than ten thousand dollars ($10,000).”
Ind. Code § 33-29-2-4(b)(1)

What to do next

1. Find the date of your last payment or account activity — that is usually when the clock started.
2. If a collector contacted you in the last 30 days, dispute in writing first: the validation letter generator asks the collector to verify the debt without admitting it.
3. Do not pay or sign anything on an old debt until you know how Indiana treats a payment (above).
4. If you are sued, respond by the deadline on the summons and raise the statute of limitations as a defense.

Common questions

How long can a debt collector sue me in Indiana?

6 years for credit-card debt and 6 years on a written contract, under Ind. Code § 34-11-2-9; § 34-11-2-7. The period usually runs from your last payment or the date of default.

Does a payment restart the clock in Indiana?

An acknowledgment or promise extends the time to sue only if it is in writing and signed (Ind. Code § 34-11-9-1; § 34-11-9-3).

Does Indiana have its own debt collection law?

Indiana's collection agency law (Ind. Code ch. 25-11-1) requires collection agencies operating in Indiana to be licensed and to account for and remit money they collect; it is mainly a licensing law. (Ind. Code § 25-11-1-7).

How long does a court judgment last in Indiana?

In Indiana, every judgment of a court of record is considered satisfied after twenty years. (Ind. Code § 34-11-2-12).

How much of my pay can be garnished in Indiana?

Indiana limits wage garnishment on judgments to the lesser of 25% of weekly disposable earnings (which a court may reduce to between 10% and 25% on the debtor's showing of good cause) or the amount above 30 times the federal minimum hourly wage; this rule was recodified in 2026 from IC 24-4.5-5-105 to IC 37-2-6-4. (Ind. Code § 37-2-6-4(b) (formerly Ind. Code § 24-4.5-5-105, recodified by P.L.115-2026)).

What if I am sued on an old debt in Indiana?

Respond by the deadline on the summons. An expired limitations period is a defense you generally have to raise yourself; a court that hears nothing from you can enter a default judgment.