Top 3 Indianapolis Business Debt
Settlement Companies

Best Indianapolis Business Debt Settlement Companies: Checking Bonds, Fees and Court Readiness in Marion County

Best Indianapolis Business Debt Settlement Companies should put their fees in writing, post a $25,000 bond with the Indiana attorney general if subject to the Indiana Credit Services Law, and be able to retain an Indiana licensed lawyer to defend your business if a funder sues or files a New York judgment in Marion County.

If you are being sued over an MCA, see Best Indianapolis MCA Debt Relief Lawyers. For debt settlement companies serving all of Indiana see Best Indiana Business Debt Settlement Companies.

Are Indianapolis business debt settlement companies licensed?

No. Indiana's debt management company law, IC 28-1-29-1, only covers individuals who have debt related to personal, family or household purposes and excludes debt settlement providers.

Indiana's Credit Services Organizations Act may apply to Indianapolis debt settlement companies. The Act defines a credit services organization to include a person who is paid to provide "debt settlement services on behalf of a buyer." A buyer is an individual. A credit services organization must post a $25,000 bond and provide a copy of it to the Indiana attorney general before operating in Indiana. See IC 24-5-15-8. It is not clear whether this Act applies to your business. Your LLC probably signed the advance, but you likely signed a personal guaranty. The Act also defines debt settlement services to apply only to unsecured debt, while many funders file a UCC lien on the business' accounts receivable. Finally, the Act's definition of extension of credit is based on credit for personal and household purposes. See IC 24-5-15-3. I could not find any case law or guidance from the attorney general on the question.

Ask each company whether it has posted a bond under the Credit Services Organizations Act and get the name of the surety company in writing. Even if the company is legally operating in Indiana without a bond, you cannot seek damages from the bond if something goes wrong. Also, an out of state business must register with the Indiana Secretary of State to do business in Indiana, IC 23-0.5-5-2, may be subject to a civil penalty of up to $10,000 for failing to register, and may not bring suit in Indiana until it does.

Are Indianapolis business debt settlement company fees regulated?

Indiana does not regulate the amount a debt settlement company may charge a business.

The federal ban on upfront debt relief fees, 16 CFR 310.4(a)(5)(i), bars a fee until a debt is settled and a payment made, but only for consumer debt. If Indiana's Credit Services Organizations Act applies to the company working with your business, it would bar an unbonded company from taking money before it has completely performed.

You are only protected by what is in your contract. Know what the fee is, in dollars or as a percentage of some defined number; when the fee is paid, at settlement or at the end of payments; and what you get back if you cancel after, say, two months.

Does Indiana make MCA funders disclose the true cost of an advance?

No. Indiana has not enacted a commercial financing disclosure law.

As of March 2026, ten states had enacted one: California, Connecticut, Florida, Georgia, Kansas, Missouri, New York, Texas, Utah and Virginia. See Venable, State Commercial Financing Disclosure Laws (March 2026). In states without a law, like Indiana, the settlement company will have to compute the rates from the contract terms, such as purchase price, purchased amount, remittance amount, frequency of remittance, and whether a reconciliation clause was followed.

What can the best Indianapolis business debt settlement companies do once a lawsuit has been filed against me?

Negotiate. But they cannot answer the lawsuit, appear at court hearings or ask a judge to stay the lawsuit. For these actions, you will need an Indiana lawyer.

The threat of a confession of judgment may not be as serious as some national settlement companies make it seem. First, Indiana voids any warrant to confess judgment that is signed before the claim arose, IC 34-54-3-3, and it is unlawful to procure one. Second, since August 30, 2019, a confession of judgment can only be filed in the New York county where you reside or have a place of business. See CPLR 3218(b). So if you do not have a place of business in New York, they have to file a lawsuit against you, which gives you a chance to negotiate a settlement at one of four key points:

1. The lawsuit. The lawsuit could be in New York, under a forum selection clause in the contract, or in Marion Superior Court. If it is in Indiana, you have 20 days after service to respond to the Complaint. See Indiana Trial Rule 6. If the amount claimed is $10,000 or less, the lawsuit may be filed in one of the Marion County township small claims courts. See IC 33-34-3-2. If the case qualifies for Indiana's Commercial Court, either party can opt in and the other has 30 days to opt out.
2. Filing of a New York judgment with the Marion County Clerk. This makes the New York judgment enforceable like an Indiana judgment. But execution cannot issue until 21 days after the judgment was entered in New York. See IC 34-54-11-2.
3. Proceedings supplemental. This is the process by which they garnish your bank account, and your bank may be named as Garnishee. You will have at least 20 days after you are served to appear. See Indiana Trial Rule 69(E).
4. When they freeze the bank account. They can freeze accounts in your name or jointly with others. See IC 34-55-8-7. You can ask the court to hold an exemption hearing within 5 business days of your request. The exemption for personal intangible property (e.g. bank accounts) is $450. See 750 IAC 1-1-1. There is no exemption for your LLC's accounts.

A good settlement company should be able to help you at the first two checkpoints, which are cheaper than waiting until your bank account has been frozen. Ask the company how it finds new lawsuits, who its lawyers are in Indiana and what it did for the last client whose funder filed a New York judgment here.

What are the red flags when hiring an Indianapolis business debt settlement company?

The red flags are things the company does that Indiana's Credit Services Organizations Act (CSO Act) treats as deceptive acts. Those include:

• A power of attorney for purposes other than document inspection, which is a deceptive act under the CSO Act.
• A stipulated judgment, which is legal in Indiana after a claim arises as a confession of judgment in court with consent under IC 34-54-2-1, and which also acts as a release of errors. This lets the funder get around the ban on confessions of judgment before signing. Have a lawyer review it with you.
• Advice to stop making payments and ignore a summons. After you default, the funder can direct your customers to pay it under UCC 9-607, and not answering the lawsuit will lead to judgment and start the clock running in Marion County.
• Being scared out of your wits that a confession of judgment is just around the corner. If you have a place of business in Indianapolis and none in New York, the risk is low.
• Lastly, a consumer debt company that offers to roll the debt into a personal credit card program.

Frequently Asked Questions

Does Indiana license debt settlement companies that work with Indianapolis businesses?

No, the statute for debt management in Indiana is limited to personal, family and household debts. There is no state license, but the Credit Services Organizations Act requires a company to put up a $25,000 bond with the attorney general, which may apply if you are an owner settling the merchant cash advance debt of your LLC, though this is an unsettled issue.

Can a settlement company stop a New York judgment from being enforced in Marion County?

A settlement company can only negotiate a deal for the funder to not enforce the judgment. To ask the court for an official stay under the Indiana foreign judgment statute, or for an exemption hearing on a frozen account, you need an Indiana lawyer.

How long do I have before a funder can take money from my Indianapolis bank account?

A funder must obtain a judgment before taking your money. If they get a judgment in New York and file it in Marion County, they cannot get an execution until 21 days after the date of entry in New York. However, if they file a motion for proceedings supplemental naming your bank, you have at least 20 days from service to appear, so the time may be much shorter if the two actions are filed close together.

Where do I complain about a debt settlement company in Indiana?

The Indiana attorney general's Consumer Protection Division will mediate and investigate complaints against businesses. You can file online or call 1-800-457-8283. You can also sue a company violating the Credit Services Organizations Act for twice your actual damages or $1,000, whichever is greater, plus attorney's fees, and collect from the bond.