Indiana Credit Card Debt: Statute of Limitations & Laws (2026)

Indiana’s 6-year limitations period

Credit card debt in Indiana is a promissory note or open account claim. Indiana Code § 34-11-2-9 sets a 6-year limitations period running from the cardholder’s last payment or last written acknowledgment. The Indiana Court of Appeals confirmed in Smither v. Asset Acceptance LLC that each missed monthly payment does not restart the clock; the clock runs from the date of the first missed payment that was never cured.

A written acknowledgment of the debt or a partial payment after the period began to run can restart the clock under IC § 34-11-1-2. This is why debt collectors push hard for any payment, even 1 dollar, on old accounts. Indiana consumers should never make a payment or sign any acknowledgment on a debt that may be approaching the 6-year mark without first verifying the date of the original delinquency.

Proceedings supplemental, Indiana’s unusual collection procedure

Most states issue garnishment as a separate order. Indiana uses a proceeding supplemental under Indiana Trial Rule 69(E), a hearing-based collection process. After judgment, the creditor files a verified motion for proceeding supplemental. The debtor is ordered to appear in court for examination under oath about assets, income, and employment. Failure to appear can result in a body attachment (bench warrant for civil arrest).

At the proceeding supplemental hearing, the court can order:

• Wage garnishment (limited by IC § 24-4.5-5-105 to 25 percent of disposable earnings)
• Turnover of bank account funds
• Turnover of non-exempt personal property
• Installment payment plans

The Indiana Legal Services guide on proceedings supplemental describes how to respond to a PS order and assert exemptions.

The Indiana 25 percent cap

Indiana wage garnishment under IC § 24-4.5-5-105 follows the federal Consumer Credit Protection Act formula: the lesser of 25 percent of weekly disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage (217.50 dollars in 2026). Once the order issues, it is continuing and remains in effect until the judgment is paid in full, distinguishing Indiana from Michigan’s 182-day periodic writs.

Settlement math for an Indiana cardholder with a 6,500 dollar judgment

A Marion County (Indianapolis) resident with a 6,500 dollar credit card judgment faces a continuing garnishment of 25 percent on disposable weekly earnings of 640 dollars, or 160 dollars per week (8,320 dollars per year). Indiana post-judgment interest under IC § 24-4.6-1-101 accrues at 8 percent per year (the standard contract rate), adding 520 dollars in year one.

A lump-sum settlement at 33 percent of the principal is 2,145 dollars. Once the satisfaction of judgment is filed in the originating court, the continuing garnishment is dissolved within 7 to 10 business days. The pillar payoff calculator models multi-year garnishment costs against settlement cash today.

Indiana versus Midwest neighbors

Indiana’s homestead is modest compared to Ohio, but the 25 percent garnishment cap and continuing-writ structure are standard for the region.

Five Indiana-specific paths

1. Assert the SOL defense in your answer. Indiana small claims and superior court rules require a written answer within 20 days of service for amounts over 8,000 dollars (small claims) or 23 days for superior court cases. The answer must specifically plead the IC § 34-11-2-9 limitations defense or it is waived.

2. Show up for the proceeding supplemental. Failure to appear at a PS hearing leads to a body attachment, civil arrest, and additional fees. Even if you cannot pay, appearing and asserting exemptions stops the bench warrant.

3. Demand registration verification from a debt-buyer plaintiff. Indiana Code § 24-5-15.5 requires debt buyers to register with the Secretary of State Business Services Division. A debt buyer suing without active registration is subject to dismissal and FDCPA liability.

4. Use the Indiana exemptions strategically. The 22,750 dollar homestead plus 12,100 dollar personal property exemption plus 500 dollar intangibles exemption stack to about 35,350 dollars per individual; spouses can each claim their share. The 1,000 dollar professionally prescribed health aid exemption (medical equipment) is often overlooked.

5. Chapter 7 with the federal exemption election. Indiana opted out of federal bankruptcy exemptions for filers using the state schedule, but filers can choose between Indiana exemptions and a limited federal supplemental list. Most consumer credit card debt is dischargeable in Chapter 7 under 11 U.S.C. § 727.

Decision tree

• Sued by debt buyer not registered with Indiana Secretary of State: file motion to dismiss based on IC section 24-5-15.5 violation.
• Last payment more than 6 years ago: answer with the IC section 34-11-2-9 limitations defense.
• Proceeding supplemental scheduled: appear, list exemptions, propose installment plan or negotiate.
• Judgments totaling over 20,000 dollars and income below median: file Chapter 7.

Primary Indiana and federal sources

• Indiana Code § 34-11-2-9, statute of limitations for promissory notes
• Indiana Code § 24-4.5-5-105, wage garnishment limit
• Indiana Code § 34-55-10-2, exemption schedule
• Indiana Code § 24-5-15.5, debt-buyer registration
• Indiana Trial Rule 69(E), proceeding supplemental
• Indiana Attorney General Consumer Protection
• Indiana Legal Services

Sibling state pages

• Ohio credit card debt laws
• Michigan credit card debt laws
• Illinois credit card debt laws
• Kentucky credit card debt laws

Related calculator tools

• Credit card payoff calculator
• Debt management plan calculator
• Balance transfer calculator

Frequently asked questions

What is the statute of limitations on credit card debt in Indiana?

Six years from the date of last payment or written acknowledgment, under Indiana Code section 34-11-2-9 for promissory notes and open accounts. The same 6-year period applies to credit card debt. The Indiana Court of Appeals has held that each missed payment does not restart the clock; only a written acknowledgment or partial payment can restart it under IC section 34-11-2-9.

How does Indiana wage garnishment work for credit card debt?

After a money judgment, the creditor opens a proceeding supplemental under Indiana Trial Rule 69(E) to discover assets and request a wage garnishment order. The court issues a wage garnishment order capped at the lesser of 25 percent of disposable earnings or the amount over 30 times the federal minimum wage. Indiana also uses a continuing garnishment that remains effective until the judgment is paid in full.

What does the Indiana homestead exemption protect?

Indiana Code section 34-55-10-2(c)(1) protects 22,750 dollars of equity in a primary residence as of the 2025 biennial inflation adjustment. Tangible personal property (other than a residence) is exempt up to 12,100 dollars under IC section 34-55-10-2(c)(2), and intangible property (excluding wages) up to 500 dollars. Indiana does not provide a specific vehicle exemption; vehicles are protected only through the personal property allowance.

Can a debt buyer sue me in Indiana without the original card agreement?

Indiana Code section 24-5-15.5 regulates debt buyers and requires registration with the Indiana Secretary of State. In a lawsuit, debt buyers must comply with Indiana Trial Rule 9.2 affidavit requirements and produce documentary proof of the assignment chain. Indiana courts dismissed thousands of debt-buyer cases in 2022 to 2024 for failure to produce the original cardholder agreement at trial.

Where do I file an Indiana consumer complaint against a credit card collector?

The Indiana Attorney General Consumer Protection Division accepts complaints at in.gov/attorneygeneral/consumer-protection-division. Indiana also requires collection agencies to be licensed by the Department of Financial Institutions; complaints against licensees go through DFI at in.gov/dfi. For federal Fair Debt Collection Practices Act violations, also file with the Consumer Financial Protection Bureau.