Despite the fact that Indiana is in the bottom 20% of all states when it comes to credit card and mortgage debt, this does not mean that life is easy for anyone in the state. Many cannot make monthly payments regularly, and some continue to have difficulty reducing their debt no matter how many payments they make.
For those struggling with debt, Indiana has debt relief options to help them get rid of debt. During these challenging times, one does not need the added pressure that debt collectors put on consumers. Even though many methods of debt collection in Indiana are within the law, there is a certain limit that collectors are not allowed to go beyond. The FDCPA was enacted by Congress to prevent creditors from unlawfully treating their customers. Consumer protection statutes are in place in some states, such as Indiana, to safeguard citizens from such misconduct.
You must understand and know your legal rights when dealing with debt collectors. These organizations follow the rules. You may have grounds to file a lawsuit against the debt collector for violating consumer protection regulations if they don't. Debt collectors are prohibited from using these tactics:
Debt collectors in Indiana are prohibited from communicating or behaving in a way that would be considered harassment, oppression, or abuse. In addition, they are not permitted to:
Debt collectors cannot legally threaten you, but they can harass you with daily phone calls, letters, and threats of legal action to get you to settle the debt.
Debt collectors cannot:
However, as a last resort, debt collectors can file a lawsuit to get their money back from you if you fail to pay back the debt. Since debtors rarely appear in court, wage garnishment is the norm in these situations. With a judgment order against you, they can garnish up to 25% of your disposable income.
Debt collectors cannot:
With a court order, they can seize your assets and your bank accounts to get paid for your debt. Moreover, you can be arrested if you fail to attend court when you are summoned.
Indiana debt collection laws have different time limits for oral and written contracts. The statute of limitation begins to take effect either on the date your payment is due or the most recent time you made a payment before default.
Let's see the different statutes of limitations on debt in Indiana:
Indiana has two different debt statutes of limitations:
Indiana debt collection law specifies a six-year statute of limitations for filing suit against a debtor for breach of an oral agreement or implied contract. This clause covers personal property recovery, damage from property detention, and credit card debts.
A written contract is an agreement between a debtor and a creditor that is signed and contains information about the amount of debt, the type of debt, and the maturity date of the debt. Other types of written contracts, such as promissory notes and bills of exchange, are also included in this category. The statute of limitations for collecting debts arising from written contracts is six to ten years.
Let's have a look at some of the most common written contracts:
If the debtor voluntarily pays or acknowledges in writing that they owe the money before the statute of limitations expires, the clock will start over. The debt collector may seek a judgment to buy more time to collect payment from the customer.
The statute of limitations for judgments in Indiana is ten years but can be re-established, prolonging the collection period. A creditor has up to ten years from the date of charge to collect on a judgment. If the creditor acts before the ten years, the judgment can be renewed for another decade.
Judgments expire if they aren't renewed on time or if the debt collector doesn't take any steps to enforce them. Once an assessment has passed, the debt collector can no longer take the debtor to court for nonpayment of the debt. Therefore, the debt collector is prohibited from:
Having debt can be an extremely stressful burden to manage. Debt can put anyone in a corner and make them embarrassed because of the constant harassment from debt collectors. But debt can be managed if you can be focused and vigilant. You should always be aware of your rights and all the vital information regarding your debt. You can get the help of an attorney who can guide you through the process of handling debt collectors. They can help you understand your rights and what the debt collectors are allowed to do and not do. You can also take the help of credit counselors, who can provide various methods and programs to help you pay off your debt.