The Indiana statute of limitations governs the maximum amount of time that a party has in order to sue someone for a debt. The statute of limitations for oral contracts and written contracts concerning the payment of money and promissory notes is 6 years from the time the debt incurred and 10 years for all other contracts which are not related to money matters. If the debtor makes a promise to pay or makes a payment, then the statute can start running all over again.
A debt collection company or debt collector also has the right to extend the time in which it can collect a debt from a debtor/consumer by filing a lawsuit and obtaining a judgment. The statute of limitations in Indiana for a judgment is 10 years, unless otherwise renewed by the debt collector. This means that the judgment stays on your credit history for 10 years and the creditor has 10 years in which to collection that judgment against you. The creditor can go to court after the 10 year period and ask for a request to renew the judgment against you for an additional 10 years.
Under the Fair Debt Collections Practice Act, you have the right to dispute the debt. The debtor must give you 30 days time in which to dispute a debt before filing a lawsuit. If they fail to do so, you can ask the court to dismiss the lawsuit. You can also dispute the debt with the three major creditor bureaus, and ask them to remove it from your credit history. They must automatically do so if your creditor fails to respond within 30 days from receipt of the dispute notice and your creditor cannot report the debt again. However, this does not relieve you from paying the debt unless it has expired under the statute of limitations.
If the debt has expired, you can also ask the court to dismiss the lawsuit. There is no reason for you to pay an expired debt. However, if you fail to show up in court, the creditor can obtain a judgment against you. A creditor can enforce a judgment against you by garnishing your wages or bank account or filing a lien against property you own. Once a judgment has been entered against you, it is much more difficult to have it removed. It can also damage your credit by lowering your credit score. So it is best not to ignore the lawsuit and to try and fight it with the help of an Indiana debt counseling attorney.
Hiring an Indiana Bankruptcy Attorney
Our Indianapolis Indiana Bankruptcy Lawyers at Walton Legal Services will guide you safely through Bankruptcy proceedings. We have over 30 years of experience and know exactly how to get you relief from the burden of too much debt. Call our Bankruptcy Attorneys at 317-897-3262 today.