Legal Question in Credit and Debt Law in Indiana

Re: validation of debt and summons received for Credit Card Debt

Most debts in Indiana have a six year limitation period. But that is not often an effective defense, since the time doesn't start until the last transaction, such as a payment or other acknowledgment of the debt, between the parties.

I take it your wife has been sued. She should file an answer to the complaint, to make sure a default judgment is not entered against her. Go to the the office of the court clerk listed on the summons to file the answer. Be sure to keep a file-marked copy. Then when the case comes up for trial, she can explain to the judge why she doesn't owe that much money. If you received the money or credit, the debt is enforceable, whether or not there is a signed agreement. The creditor may be unable to prove its case. If there really was an enforceable original obligation for $3600, then an offer to settle for $4000 is reasonable, considering the extremely high interest and fees that are legally permitted. But if you are contemplating a bankruptcy in the near future, then payment is not advised, assuming this is a dischargeable debt. Good luck.