What to Do When Someone Won't Pay a Small Claims Judgment in Indiana

If someone is refusing to pay your Indiana small claims judgment, you have legal tools to compel payment — but the court will not use them for you. Indiana courts enter judgments. They do not enforce them. State rules allow collection after judgment entry unless a stay applies, but local rules can impose a waiting period. Proceedings Supplemental under Trial Rule 69(E) and Indiana Code Chapter 34-55-8 can require the debtor to appear and disclose assets under oath. From there, you choose the enforcement tool that matches what they own. The situation where none of these tools work is a genuinely judgment-proof debtor — no job, no bank accounts, no property, income entirely from exempt federal sources — and even then, the judgment may be enforced for 20 years while interest generally accrues at 8% simple interest unless the underlying written contract specifies a lower rate.

Why the Debtor Is Not Paying (and What You Can Do About Each Scenario)

They are ignoring you

This is the most common situation. The debtor received the judgment, knows they owe the money, and is simply not responding to your calls, letters, or demands.

What works: File a Verified Motion for Proceedings Supplemental under Trial Rule 69(E) and Indiana Code Chapter 34-55-8. The court may issue an Order to Appear compelling the debtor to answer questions about income, bank accounts, vehicles, and other assets. Service is executed by certified mail, sheriff, or constable; follow the court's current service instructions and local rules.

If the debtor ignores the Proceedings Supplemental order and fails to appear, ask the court how to raise the nonappearance. The judge decides any contempt allegation; inability to pay the judgment itself is not grounds for criminal contempt or arrest. Most debtors take the process seriously once a contempt motion is on the table.

They say they cannot afford to pay

The debtor may genuinely lack the ability to pay the full judgment right now. That does not mean the judgment disappears.

What works: Proceedings Supplemental still reveals their financial situation under oath. If the debtor has some income but cannot pay in full, the court may order installment payments under Small Claims Rule 11(C), based on the debtor's financial capacity. If they have no income or assets, the judgment may be enforced for 20 years under IC 34-11-2-12, and you can file Proceedings Supplemental again when new facts or changed financial circumstances support it. Re-filing without new facts or changed circumstances is legally impermissible. Interest generally accrues at the statutory 8% simple rate unless the underlying written contract specifies a lower rate.

You can also use the judgment lien on real property. It attaches automatically to real estate in the county where judgment was entered. To extend it to another Indiana county, obtain a certified transcript or abstract from the originating clerk and file it with that county's circuit court clerk. The lien expires after 10 years; the $15 post-judgment redocketing fee applies where applicable, and any transcript filing fee should be confirmed with the target clerk.

They have assets but are hiding them

Some debtors deliberately move assets, change bank accounts, or work under the table to avoid collection.

What works: Proceedings Supplemental is sworn testimony. Compare the debtor's answers with public records — the county assessor for real property, the BMV for vehicle records, and the Secretary of State for business filings. The court may consider contempt allegations if the debtor refuses to comply with an order.

If you suspect a transfer was made to avoid payment, document what you found and consult an Indiana attorney before filing a separate action or assuming the transferred asset can be reached.

They have left Indiana

If the debtor has moved out of state, you can domesticate the Indiana judgment in the debtor's new state under the Uniform Enforcement of Foreign Judgments Act. Each state has its own registration process — typically filing a certified copy of the Indiana judgment with the new state's court and then using that state's enforcement tools.

For real property the debtor still owns in Indiana, your enforcement options remain available. The judgment creates a lien in the county where it was entered; to extend it to another Indiana county, file a certified transcript or abstract with that county's circuit court clerk.

The Enforcement Tools Available to You

Once Proceedings Supplemental reveals the debtor's financial picture, you choose from these tools:

Wage garnishment — the debtor has a job. The court orders the employer to withhold the lesser of 25% of disposable earnings or the amount exceeding 30 times the federal minimum wage per week. The employer sends the withheld amount directly to the court.

Bank account garnishment — the debtor has a bank account with nonexempt funds. The garnishment freezes the account. The debtor can claim the $450 intangible-property exemption under IC 34-55-10-2(c)(3). Direct-deposited Social Security, SSI, VA, and Railroad Retirement benefits receive federal protection based on the two-month lookback period; balances above the protected amount may still be subject to a court-ordered hold.

Judgment lien — the debtor owns real estate. A judgment automatically creates a lien on property in the county where it was entered. To extend it to another Indiana county, obtain a certified transcript or abstract from the originating clerk and file it with that county's circuit court clerk. The lien clouds title and expires after 10 years, while the judgment itself may be enforced for 20 years.

Writ of execution — the debtor owns nonexempt personal property (vehicles, equipment, valuable items). The sheriff seizes and sells the property at public auction to satisfy the judgment.

Who This Is For

• You won a judgment in an Indiana small claims court and the debtor has not paid
• The debtor is ignoring your attempts to contact them
• You do not know what the debtor owns or where their money is
• You want practical steps, not general legal information
• Your judgment is under $10,000 and hiring an attorney to collect it does not make financial sense

Who This Is NOT For

• You have not yet filed your small claims case — this covers post-judgment enforcement, not the initial lawsuit
• You are the debtor looking for ways to respond to a judgment — Indiana Legal Help (indianalegalhelp.org) provides free resources for debtors
• Your judgment is from another state and you need to enforce it in Indiana — that requires domesticating the out-of-state judgment first

What If the Debtor Is Truly Judgment-Proof?

A debtor is judgment-proof when they have no garnishable wages, no bank accounts with nonexempt funds, no real property, and their income comes entirely from exempt sources (Social Security, VA benefits, SSI, or Railroad Retirement benefits). In this situation, none of the enforcement tools produce immediate results.

But judgment-proof is not permanent for most people. Circumstances change — the debtor gets a job, opens a bank account, buys property, receives an inheritance. Indiana's 20-year enforcement period exists precisely for this reason. A real estate lien expires after 10 years. File Proceedings Supplemental again only when new facts or changed financial circumstances support it; re-filing without them is legally impermissible.

Meanwhile, post-judgment interest keeps working at the applicable rate. At the statutory 8% simple rate, a $5,000 judgment becomes $5,400 after one year and $9,000 after ten years, before payments or costs; a lower rate in the underlying written contract controls.

Frequently Asked Questions

How long after the judgment do I have to start enforcement?

State rules allow collection after judgment entry unless a stay applies, but local rules may impose a waiting period. For example, Elkhart County requires 10 calendar days to pass before a motion for proceedings supplemental may be filed unless the court grants leave. Indiana judgments may be enforced for 20 years under IC 34-11-2-12; check the current local rule for the court that entered your judgment.

Can the debtor go to jail for not paying?

Not for the debt itself. A judge may consider contempt allegations when a debtor fails to comply with a court order, but inability to pay the judgment itself is not grounds for criminal contempt or arrest.

What if the debtor files for bankruptcy?

A bankruptcy filing triggers an automatic stay that halts active collection, including proceedings supplemental, wage garnishment, bank account holds, and execution sales. Stop enforcement immediately when you receive notice of the filing. The effect of bankruptcy on the judgment beyond the stay depends on the bankruptcy case.

Can I collect from the debtor's spouse?

Do not assume that a spouse is liable or that the spouse's property is reachable just because you have a judgment. Real estate held by spouses as tenants by the entirety is protected from an individual debt of one spouse; other jointly held assets require case-specific review.

Does the debtor have to pay my collection costs on top of the judgment?

Indiana allows standard filing fees, sheriff service charges, and docketing costs advanced by the creditor to be added as court-allowed costs. The listed post-judgment redocketing fee is $15 where applicable; in-state sheriff service is $28, or $15 for Marion County constable service. Ask the court which costs are allowed in your case before adding them to the balance.

The Collecting a Small Claims Judgment in Indiana guide walks through every enforcement tool step by step — from filing Proceedings Supplemental through wage garnishment, bank garnishment, judgment liens, writs of execution, and satisfaction — with the specific forms, fees, and offices for each tool in Indiana's 92 counties and 9 Marion County townships.

See more Indiana guides →