Indiana debt: six years, licensed debt buyers, and co-signers' clocks
Indiana gives six years on most consumer debts, whether a credit card or a written loan. If you share a debt with someone, a payment by one of you does not restart the clock for the other. Indiana also requires debt buyers, not just agencies, to hold a state license.
Free check first. If a dispute letter makes sense, it costs $29 ($19 for military, veterans, seniors and people with disabilities) with three follow-ups.
Who is asking you to pay?
Look at the company name at the top of the letter or in the caller ID.
Indiana at a glance
- Credit cards, open accounts
- 6 years (34-11-2-7)
- Written loans for money
- 6 years (34-11-2-9)
- Other written contracts
- 10 years (34-11-2-11)
- A payment extends the clock
- Only for the person who paid
- Licenses
- Agencies and debt buyers, via NMLS
- Wage garnishment
- Lesser of 25% or above 30 × federal minimum wage
General information about Indiana law, with sources below. Not legal advice.
Six years in Indiana, and when it is ten
Six years for open accounts and contracts not in writing (IC 34-11-2-7), and six years for promissory notes and written contracts for the payment of money made after August 31, 1982 (IC 34-11-2-9). Indiana treats credit cards as contracts not in writing, so they fall under the six-year rule in IC 34-11-2-7. Other written contracts, not for the payment of money, have ten years (IC 34-11-2-11).
A payment may extend the time limit, but only for the person who made it, not for co-signers. That matters for joint accounts and co-signed loans: one person paying does not extend the time for the other.
Licenses for agencies and debt buyers
Every collection agency must be licensed by the Indiana Secretary of State, Securities Division, through the NMLS system. Indiana requires debt buyers to hold a collection agency license as well. You can look up a license on the NMLS consumer access site.
The federal dispute right applies: a written dispute inside the validation period makes the collector stop until it mails verification.
After the 6-year limit runs out, a collector must not sue or threaten to; read what to do about an old debt before paying anything.
Limits vary a lot between states: by comparison, Massachusetts sets 6 years and North Carolina sets 3 years for similar debts.
Our guide on how to dispute a debt with a collector applies in Indiana, with a free sample letter.
National collectors active in Indiana include Absolute Resolutions Investments and Afni; our guides list their official dispute addresses.
For the court side of a Indiana debt, from the summons to a possible judgment, see how to defend a debt collection lawsuit.
Wage garnishment in Indiana
A garnishment can take no more than the lesser of 25% of disposable weekly earnings or the amount above 30 times the federal minimum wage (IC 24-4.5-5-105). Indiana treats independent contractor earnings as wages that can be garnished, so gig and contract income is not a way around a judgment.
Indiana's protections sit on top of federal law; our page on stopping a wage garnishment explains both.
Questions people ask about debt in Indiana
What is the statute of limitations on credit card debt in Indiana?
Six years. Indiana treats credit cards as contracts not in writing under IC 34-11-2-7.
Is it ever ten years in Indiana?
Yes, for written contracts that are not for the payment of money, under IC 34-11-2-11.
If my co-signer pays, does my clock restart?
No. In Indiana a payment extends the time limit only for the person who made it.
Do debt buyers need a license in Indiana?
Yes. Indiana requires collection agencies and debt buyers to be licensed through the Secretary of State and NMLS.
How much of my wages can be garnished in Indiana?
The lesser of 25% of disposable weekly earnings or the amount above 30 times the federal minimum wage. Independent contractor earnings count too.