From Judgment to Payment
A court judgment is a powerful legal tool, but it isn’t the finish line. Winning your case gives you the right to collect — it doesn’t hand you the money. You still have to enforce the judgment to actually recover what you’re owed. Here’s how that works in Indiana, from getting a judgment to collecting on one.
Getting to a Judgment
If you haven’t sued yet, here’s the short version of how creditors get to a judgment in Indiana:
- Check the statute of limitations. This is the deadline for filing a lawsuit to collect a debt. In Indiana, written contracts, promissory notes, and oral contracts or open accounts all carry a six-year statute of limitations. If the debt is older than that, you may not be able to sue. See our full guide to Indiana’s statute of limitations on debt for details.
- File a lawsuit. If the debt is still within the statute of limitations, you can file suit in the county where the debtor lives or where the debt originated. Bring evidence, such as a copy of the contract or invoice.
- Serve the debtor and go to court. Once you file, you must serve the debtor a copy of the lawsuit, typically through personal service or certified mail. If the debtor doesn’t respond, you can ask the court for a default judgment in your favor. If the debtor does respond, the case proceeds to trial.
Recovering on the Judgment
Once the court enters judgment in your favor, the debtor doesn’t automatically pay. A judgment gives you the legal authority to pursue the money through several enforcement tools:
- Wage garnishment. With court approval, a portion of the debtor’s paycheck can be withheld and paid directly toward the judgment.
- Bank account levy. Funds can be seized directly from the debtor’s bank account to satisfy the judgment.
- Property liens. Recording the judgment as a lien against real estate the debtor owns can force payment when the property is sold or refinanced.
- Debtor’s examination. If you don’t know where the debtor’s assets are, the court can order the debtor to appear and answer questions under oath about income, bank accounts, and property.
In Indiana, a money judgment generally remains enforceable for ten years from the date it’s entered and can be renewed if the debt is still outstanding when that period runs out. Letting a judgment sit unenforced doesn’t make it go away, but it does give the debtor more time and opportunity to move assets out of reach.
Why Many Creditors Work With a Collection Agency
Each of the steps above, from filing suit to garnishing wages, has its own legal requirements, paperwork, and county-specific procedures. Handling it alone takes time most business owners don’t have, and mistakes can delay or jeopardize recovery. That’s why many creditors choose to work with a collection agency instead of managing the process themselves.
A collection agency experienced in post-judgment recovery can handle the enforcement process end to end — garnishments, levies, liens, and debtor’s examinations — so you can stay focused on running your business while the judgment gets collected.
Related reading: Indiana’s Statute of Limitations on Debt
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