Indiana Statute of Limitations on Debt: How Long Can You Be Sued?

In Indiana, a creditor or debt collector generally has six years to file a lawsuit on most consumer debt. Indiana Code 34-11-2-9 sets a six-year deadline for actions on "promissory notes, bills of exchange, or other written contracts for the payment of money," and Indiana Code 34-11-2-7 sets the same six-year limit for actions on open accounts and contracts not in writing. That means your typical credit card balance, personal loan, promissory note, or open store account usually falls under a six-year statute of limitations. Once that window closes, the debt still technically exists, but a court can no longer force you to pay it through a lawsuit if you raise the deadline as a defense.

What Indiana's six-year rule actually covers

The exact deadline depends on how the law classifies your debt. Here is how Indiana's main categories break down:

• Written contracts for the payment of money (including promissory notes): Six years under Indiana Code 34-11-2-9. This covers most signed loan agreements and notes promising to repay a fixed sum.
• Open accounts and contracts not in writing: Six years under Indiana Code 34-11-2-7. This typically covers revolving accounts and oral agreements.
• Credit card debt: Indiana courts have generally applied the six-year period to credit card accounts. Because a credit card agreement is usually treated as a written contract or account for the payment of money, the six-year clock typically governs.
• Other written contracts not for the payment of money: Ten years under Indiana Code 34-11-2-11. This longer period applies to certain written agreements that are not simply promises to pay a sum of money, so it rarely covers ordinary consumer debt.
• Sale of goods under the Uniform Commercial Code: Four years under Indiana Code 26-1-2-725. This can apply to some transactions for the sale of goods.

Because the category controls the deadline, the same dollar amount can carry a different statute of limitations depending on the paperwork behind it. If you are unsure which rule applies to your account, that is a question worth confirming with the official statute or an Indiana attorney before you assume a debt is too old to sue on.

When does the clock start running?

In Indiana, the limitations period generally begins when the cause of action "accrues" — in plain terms, when you breach the agreement by failing to pay as required. For most consumer debts, that is tied to the date of your last payment or the date you first defaulted and never brought the account current again. From that date, the creditor has six years (for most debts) to file suit.

This is a critical point: the clock is not measured from when you opened the account, when the debt was sold to a collector, or when a collector first contacted you. It runs from the date the account went into default. A debt buyer who purchases an old account does not get a fresh six years just because it bought the debt. The original default date still controls.

The rule that can restart the clock: payments and acknowledgments

One of the most important — and most dangerous — rules in Indiana debt law is that the limitations clock can restart. If you make a partial payment on an old debt, or sign a written acknowledgment or new promise to pay it, you may revive the debt and give the creditor a brand-new period to sue you.

Indiana Code 34-11-5-2 addresses written acknowledgments and promises: a new written promise or acknowledgment of an existing debt, signed by the person to be charged, can take the case out of the protection of the statute of limitations. Separately, courts have long recognized that a voluntary partial payment on a debt can restart the limitations period, because it is treated as an acknowledgment that the debt is still owed.

This is why debt collectors sometimes push hard for "just a small payment" or a quick verbal admission on a recorded call. Even a modest payment on a debt that is nearly time-barred can wipe out years of protection and reset the six-year window. Before you pay anything, agree to a payment plan, or admit in writing that you owe an old debt, find out how old the debt is. If it is close to or past the deadline, a single payment can be a costly mistake.

An expired deadline is a defense you must raise

Here is what surprises many Indiana consumers: an expired statute of limitations does not automatically stop a lawsuit. Collectors can and do file suit on time-barred debt, and if you ignore the lawsuit, the court can enter a default judgment against you even though the debt was too old to enforce.

The statute of limitations is an affirmative defense. Under Indiana Trial Rule 8(C), you generally must plead it in your written response to the lawsuit. If you do not show up and raise it, you waive the defense — and a default judgment can lead to wage garnishment, bank levies, or liens. So if you are sued on a debt you believe is time-barred:

• Do not ignore the lawsuit. Note the deadline to respond, which is short.
• File a written answer with the court and specifically raise the statute of limitations as a defense.
• Avoid making any payment or written admission until you understand whether it could revive the debt.
• Keep records of your last payment date and any account statements that establish when the debt went into default.

How federal law backs you up

Federal law adds another layer of protection. Under the federal Fair Debt Collection Practices Act (FDCPA), third-party debt collectors are prohibited from using false, deceptive, or unfair practices. The Consumer Financial Protection Bureau has made clear that suing or threatening to sue on a debt a collector knows is time-barred can violate the FDCPA. So if a collector files suit on an obviously expired Indiana debt, you may have both a state-law defense and a federal claim.

Federal law also limits how much of your paycheck can be taken if a creditor does win a judgment. The federal wage-garnishment cap restricts garnishment to the lesser of 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage. Indiana's garnishment rules generally track these federal limits, so the federal 25% ceiling is the key figure for most wage garnishments in the state.

Reporting time limits are different from the lawsuit deadline

Do not confuse the statute of limitations with how long a debt stays on your credit report. Under the federal Fair Credit Reporting Act (FCRA), most negative items — including charged-off accounts and collections — can be reported for about seven years. That seven-year credit-reporting window is separate from Indiana's six-year lawsuit deadline. A debt can drop off your credit report while still being within the lawsuit window, or remain on your report after the lawsuit deadline has passed.

Where to verify and get help in Indiana

Because YMYL legal rules can change and because the right deadline depends on your specific facts, confirm the current law before you act. You can verify the statutes directly in the Indiana Code (Title 34, Article 11 for limitations of actions). For consumer complaints and guidance, contact the Office of the Indiana Attorney General, Consumer Protection Division, which handles complaints about debt collectors and unfair practices and enforces the Indiana Uniform Consumer Credit Code. The federal Consumer Financial Protection Bureau is another resource for debt-collection complaints. If you have been sued, consider speaking with an Indiana consumer-law attorney or a local legal aid office, especially before making any payment that could restart the clock.

The bottom line: in Indiana, most consumer debts carry a six-year statute of limitations measured from your last payment or default. That clock can be reset by a payment or a written acknowledgment, and an expired deadline only protects you if you show up in court and raise it.

Official Indiana Sources

This page is based on Indiana law. Limits and deadlines change — verify the current details directly with the official Indiana sources below. This is general legal information, not legal advice.

• Indiana Attorney General - Consumer Protection Division — official Indiana agency.
• File a Complaint - Indiana Attorney General Consumer Protection Division

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Indiana’s own rules.