How to Collect a Small Claims Judgment in Indiana

You won your case. The judge signed the order. And then the court basically told you: good luck collecting.

Indiana courts do not chase down debtors or enforce judgments on your behalf. That job falls entirely on you, the judgment creditor. The good news is that Indiana gives you real enforcement tools — proceedings supplemental, wage garnishment, bank garnishment, writs of execution, and judgment liens — and your judgment accrues post-judgment interest at 8% unless a lower written-contract rate applies (a higher contract rate is capped at 8%).

Here is the step-by-step process for actually turning that court order into money.

Wait for the Voluntary Payment Window

Indiana has no statewide 30-day voluntary-payment period before collection. Trial Rule 62 permits execution upon notation of judgment, subject to a court-ordered stay or an approved appeal bond or other security. Local rules can add a wait before particular filings; Elkhart County small-claims Rule LR02-TR69-515 bars a motion for proceedings supplemental until 10 calendar days have elapsed after judgment, unless the court orders otherwise.

An appeal alone does not automatically stay collection. A stay requires a court order or approved appeal bond or other security under Trial Rule 62.

File Proceedings Supplemental

This is your primary tool. A Proceeding Supplemental to Execution under Trial Rule 69(E) and IC 34-55-8 brings the debtor (and any third parties holding their assets) before the court. You file a verified motion under the original case number stating that the judgment remains unpaid and that execution alone will not satisfy the debt.

The court issues an Order to Appear directing the debtor to show up and disclose their income, bank accounts, real estate, and other assets under oath. Under Trial Rule 69(E), serve the debtor under Trial Rule 5 and any garnishee under Trial Rule 4; the hearing or answer date must be at least 20 days after service. The hearing is your primary asset-discovery mechanism — and it is where the court can order specific enforcement measures.

Garnish Wages

Once you know where the debtor works, you can request a wage garnishment order. Indiana follows federal caps: the employer can withhold the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage ($217.50/week). If the debtor earns less than $217.50 per week in disposable income, nothing can be garnished.

The garnishment order goes to the employer, who deducts the amount each pay period and sends it to the court clerk. You receive distributions from the clerk.

Garnish Bank Accounts

Bank garnishment in Indiana works through the Depository Financial Institutions Adverse Claims Act (IC 28-9). The bank places an immediate hold on the debtor's account, limited to the lesser of the unpaid judgment balance or the account balance at the time of service. The hold lasts 90 days unless the court orders the bank to turn over funds sooner.

Federal benefits like Social Security, SSI, VA, and Railroad Retirement payments directly deposited in the last two months are protected from automatic bank freezes. Indiana also protects $450 in total intangible personal property per individual ($900 for joint debtors), not a separate amount per account.

Record a Judgment Lien

Your small claims judgment automatically creates a lien on any real estate the debtor owns in the county where the judgment was entered. To extend the lien to property in other Indiana counties, obtain a certified transcript from the clerk of the originating court and file it with the circuit court clerk in the target county.

The lien does not force an immediate sale. It clouds the title and can complicate a sale or refinance; the lien does not itself prohibit a transfer. Indiana's homestead exemption protects $22,750 in equity per individual.

Request a Writ of Execution

For tangible personal property — vehicles, equipment, inventory — you can petition for a Writ of Execution under Trial Rule 69 and IC 34-55-1. The writ directs the sheriff to seize non-exempt property and sell it at public auction, with proceeds applied to your judgment.

This tool involves upfront costs you advance (towing, storage, advertising), and you need to identify specific property the debtor actually owns. Vehicles with loan balances exceeding their value are not worth pursuing.

Track Interest and Costs

Indiana statutory post-judgment interest runs at 8% per year under IC 24-4.6-1-101 unless a lower written-contract rate applies; a higher contract rate is capped at 8%. Court-allowed filing fees, service charges, and sheriff fees may be added to the judgment balance. Keep a running ledger — the court does not calculate accruing daily balances for you.

Know the Timeline

Indiana judgments are presumed satisfied after 20 years, but the presumption is rebuttable and proceedings supplemental have no 10-year filing limit. A judgment lien lasts 10 years; execution issued more than 10 years after judgment or a prior execution requires a motion, leave of court, and 10 days' personal notice unless a statutory exception applies. Financial situations change — people get jobs, buy property, inherit money.

Close the Case

Once the judgment is fully satisfied, you are legally required to file a Satisfaction of Judgment with the court and release any recorded liens. Failure to do so after payment can expose you to liability.

If you want all of these steps laid out with the exact forms, fees, and exemption tables for Indiana, the Collecting a Small Claims Judgment in Indiana guide walks through every enforcement tool from start to satisfaction.

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