Indiana Debt Relief

Indiana Credit Card Debt law provides for a six-year Statute of Limitations (SOL) on filing suit for unpaid open-ended debt. The SOL begins ticking from the date when the debtor first misses a payment. Subsequent partial payments renew the SOL to begin from the date of that payment. Defendants are given 20 days to answer a summons or face automatic judgment for the Plaintiff. For this reason, it is best to send the answer by certified mail.

Judgment Enforcement

Indiana judgments can be enforced for 10 years and can be extended by court order. Judgments are considered paid after 20 years. The interest rate charged on judgments is 10% per year. Both personal and real property may be levied to satisfy the judgment.

A homestead exemption of up to $7,500 is allowed for a residence and up to $4,000 for personal property without a limitation to the type of personal property. A co-owner who is also a joint debtor can claim additional exemptions of $7,500. Wage garnishments are limited to 25% of wages or the amount that exceeds 30 times the federal minimum wage.

Indiana residents should take care in signing contracts containing a “confession of judgment.” This contract clause creates an automatic admission of owing the debt in court, providing little defense to the debtor in a lawsuit. While some states do not recognize such clauses, Indian does.

Debt Settlement

The idea of having property seized and wages garnished is intimidating. Debt Settlement is a way for consumers to sidestep these worries by paying the debt on an agreed payment plan, free of interest. This lets consumers pay the debt on their own terms, rather than being restricted to a court-ordered payment schedule.