Friday, November 25, 2005

Indiana's Statute of Limitations for Debt

When a statute of limitations expires, creditors can no longer win a case involving legal action in a court of law. Indiana's statute of limitations for debts varies depending on the type of account involved.

Types

    There are four types of debt accounts that a statute of limitations can apply to in Indiana: oral, written, promissory note and open-ended account. Oral contracts are based on a handshake. Written contracts include the repayment terms between a borrower and lender on a document. Promissory notes include the number of payments as well as the interest, and open-ended accounts are revolving accounts such as credit cards.

Time Frame

    The statute of limitations for debt in Indiana is six years for oral and open-ended accounts and 10 years for written contracts and promissory notes.

Prevention/Solution

    When a statute of limitations has expired, debt collectors can still pursue an account in court, but if the defendant brings up the fact that the statute of limitations has expired, the court will rule in favor of the defendant.

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