How to File a Counterclaim in Indiana Small Claims Court

When a Counterclaim Makes Sense

A counterclaim is your own monetary claim against the plaintiff, filed within the same case. It applies when the plaintiff owes you money arising from the same transaction or occurrence — a contractor who did incomplete work and is suing you for the balance, a landlord withholding your security deposit while also claiming damages, or a buyer demanding a refund on a car you sold while owing you for agreed-upon repairs.

The key requirement is that your claim must arise from the same transaction. An unrelated debt the plaintiff owes you belongs in a separate lawsuit.

Deadlines and Procedure

Under Small Claims Rule 5, file a written Notice of Counterclaim with the court in time for it to mail a copy that the plaintiff receives at least seven calendar days before the trial date.

There is generally no filing fee for a basic counterclaim. The process is straightforward — you can file in person at the clerk's office or through the Indiana E-Filing System if your court accepts electronic filings.

Your Notice of Counterclaim should state the factual basis for your claim, the dollar amount you are requesting, and any supporting documentation (contracts, invoices, photos, communications).

Jurisdictional Caps Apply

Counterclaims are subject to the same monetary limits as original claims:

• $10,000 in Circuit and Superior Court small claims dockets (91 counties)
• $8,000 in Marion County Township Small Claims Courts

If your damages exceed the cap, you have two options. You can file the counterclaim on the small claims docket and waive the excess — recovering up to $10,000 (or $8,000 in Marion County) while accepting you cannot collect beyond that in this action. Or you can petition the court to transfer the entire case to the regular civil docket, which preserves your full claim but involves additional court costs and more formal procedures.

What Happens at the Hearing

When both a claim and a counterclaim are before the court, the judge hears both sides. The plaintiff presents their case first, then you present your defense and your counterclaim. The judge can award in favor of either party — or find that neither is owed anything, or that the amounts partially offset each other.

Bring all your evidence organized into three printed copies: one for the judge, one for the plaintiff, and one for your records. Text messages, photos, contracts, receipts, and repair estimates all go into your exhibit set.

If you prevail on your counterclaim, the judgment is entered in your favor and is enforceable through the same collection mechanisms available to any judgment creditor — including Proceedings Supplemental if the plaintiff does not pay voluntarily.

The Indiana Small Claims Response Guide covers counterclaim filing in detail, including how to calculate whether the jurisdictional cap affects your decision and how to structure your evidence for both defense and counterclaim at the same hearing.

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