Lesson. There is no limitations period for the initiation of proceedings supplemental in Indiana, assuming the motion is filed within 20 years of the entry of the judgment.
Case cite. Converging Capital LLC v. Steglich, 234 N.E.3d 902 (Ind. Ct. App. 2024)
Legal issue. Whether Indiana law imposes a limitations period on the initiation of proceedings supplemental.
Vital facts. A money judgment was entered against debtor in 2006. In 2022, an assignee of the judgment initiated proceedings supplemental (a post-judgment collection motion) against debtor.
Procedural history. On the debtor’s motion, the trial court dismissed creditor’s proceedings supplemental as untimely. Creditor appealed.
Key rules.
- Proceedings supplemental are a continuation of the original action, not a new action that may trigger certain statutes of limitations.
- Also, a pro supp is not considered an “execution” on the judgment.
- Judgments themselves generally survive for 20 years in Indiana.
Holding. The Indiana Court of Appeals reversed and remanded the case back to the trial court.
Policy/rationale. Debtor argued that a ten-year statute of limitations applied and that creditor had failed to renew the judgment within that ten-year period. But the Court clarified that the ten-year rule related only to the enforcement of a judgment lien on real estate, not to proceedings supplemental generally. Thus, the creditor was permitted to initiate the process to collect.
Related posts.
- Indiana Judgment Lien (10 Years) and Judgment Enforcement (20 Years) Statutes Of Limitation
- How Long Is Too Long To Wait Before Enforcing A Money Judgment In Indiana?
- Expired Judgment Lien Must Be Renewed Before Foreclosure Can Occur
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Part of my practice involves representing banks and lenders in post-judgment collection matters. If you need assistance with a similar matter, please call me at 317-639-6151 or email me at john.waller@dinsmore.com. Also, don’t forget that you can follow me on Twitter @JohnDWaller or on LinkedIn, or you can subscribe to posts via RSS or email as noted on my home page.