Indiana enforces specific statutes of limitations on debt collection, which limit how long creditors and collection agencies have to take legal action to recover debts. Once the deadline passes, the debt becomes time-barred, preventing legal enforcement. However, creditors can still attempt to collect through non-legal means as long as they comply with state and federal laws. Understanding these deadlines is essential for businesses seeking to protect their rights and maximize recoveries.

How the Statute of Limitation Works

The statute of limitations sets a legal timeframe for creditors to file a lawsuit to recover unpaid debts. The clock generally starts on the date of the last payment or when the account first became delinquent. If the statute of limitations expires, the debt becomes time-barred, and a creditor cannot sue for repayment.

However, certain actions—such as making a partial payment or acknowledging the debt in writing—can restart or toll the statute of limitations, giving creditors more time to take legal action.

What Are Indiana’s Statute of Limitations Laws?

In Indiana, the statute of limitations depends on the type of debt. Written contracts, including most loans, have a six-year limit, while oral contracts and open accounts (like credit cards) typically have a six-year limit as well. Court-ordered judgments can be enforced for 10 years, with the possibility of renewal.

Time Limits by Type of Debt in Indiana

Tolling & Exceptions to The Statute of Limitations

Several actions or circumstances can pause (toll) or restart the statute of limitations in Indiana:

Partial Payment or Acknowledgment of Debt: If the debtor makes a payment or formally acknowledges the debt after the clock starts, the limitations period may reset.

Leaving the State: If the debtor moves out of Indiana, the statute may pause until they return or can be served within the state.

Fraud or Concealment: If fraud is involved, the statute may not begin until the fraud is discovered.

Frequently Asked Questions for Businesses & Creditors

1. How does the statute of limitations impact my ability to collect on past-due accounts?

Once the statute of limitations is up, the debt is considered “time-barred.” While you can still pursue collection informally, you cannot obtain a court judgment against the debtor. It’s often more fruitful to focus on debts still within the enforceable window.

2. How do I know if I’m still within the statute of limitations period?

Typically, the clock starts from the date of the last payment or when the account became delinquent. To determine the exact timeframe:

• Check your records for the last payment or invoice date.
• Review any applicable contracts or notes for specific terms.
• If unsure, consult a professional at DebtCollectorsInternational.com.

3. Should I try to collect a debt even after the statute of limitations expires?

You can still request payment through letters or calls, but a time-barred debt can’t be enforced in court. Prioritizing legally enforceable debts often yields better results.

4. Does making a partial payment or acknowledging the debt change the statute of limitations?

Yes. Acknowledgment or partial payment may reset the clock, giving you another window to seek legal enforcement.

5. How do I determine the type of debt and its specific time limit?

Different types of debt (open accounts, written contracts, promissory notes, or judgments) often have unique limitation periods. Review:

• The original agreement to see if it was written, verbal, or a promissory note.
• Any judgment documents for court-ordered deadlines.
• Relevant state statutes or consult a legal advisor for clarity.

6. What if the debtor moves out of the state?

The statute may be paused until the debtor returns or is otherwise reachable within the jurisdiction of your state. This extension can give creditors additional time to file suit.

7. What are my next steps if my debtor is within the statutory timeframe?

• Gather documentation (contracts, invoices, communications).
• Consult a debt collection agency for professional assistance.
  Acting promptly and with proper legal guidance can greatly improve recovery rates.

8. Why should I consider using a professional debt collection agency?

• Expertise: Agencies understand collection laws, negotiation tactics, and best practices.
• Time Savings: Free up internal resources to focus on business growth rather than chasing debts.
• Higher Recovery Rates: Skilled collectors often have better success at recovery efforts.

9. How can Debt Collectors International help my business?

At Debt Collectors International, we specialize in global and domestic debt recovery, offering:

• Global & Domestic Debt Recovery: We have the expertise and network to handle cases worldwide.
• Comprehensive Legal Support: Stay compliant with state and federal laws.
• Skilled Negotiation Tactics: Maximize returns without harming client relationships.
• Transparent Reporting: Get regular updates on your debt recovery progress.
• No Recovery — No Fee: You only pay if we successfully collect your debt.

Need Help Collecting a Debt or Negotiating a Settlement?

Click here to request a free debt collection consultation with Debt Collectors International. Our specialists will assess your situation and propose effective strategies to recover overdue accounts—quickly and professionally.

Disclaimer: The information in this guide is subject to change as laws evolve. For specific advice related to debt collection in Idaho, consult a licensed attorney or reach out to Debt Collectors International.