The statute of limitations on credit card debt in Indiana controls the amount of time that a debt collector has to sue a debtor for an alleged debt. This statute applies to several different forms of consumer debt. They are a part of Indiana's civil code.
Type of Debt
The type of debt is important to know when considering the statute of limitations in Indiana. Different types of debt have different limitation periods. Credit cards are considered an open account. They are a revolving debt. Revolving debts allow you to use the line of credit after you have paid down the balance.
Statute of Limitations
The Indiana Statute of Limitations for credit card debt is six years. This is a longer period of time than much of the nation, according to Consumer Fraud Reporting. There are only two states, Wyoming and Rhode Island, with longer statutes of limitations. There are 16 other states that share the same statute length on open accounts.
In Court
A debtor can still be taken to court after the statute of limitations has passed. The case can and will be dismissed if the time frame is brought up as an affirmative defense. These cases are normally dismissed with prejudice, meaning that it cannot be reopened in that court.
Continued Collection Efforts
Debt collectors are able to continue collection efforts even after the statute of limitations has passed. Some collectors will not pursue these accounts as vigorously, since they are unable to sue for recovery of the money. They can still report to credit reporting agencies, contact you by phone and mail, and pursue other legal avenues to claim the alleged debt.
Other Statute of Limitations for Debt
Indiana has a number of other statutes of limitation that pertain to debt. There are three other types of debt that are covered by these: written contracts and promissory notes, such as installation loans, have a SOL of 10 years. Oral contracts have a SOL of six years.
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