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Indiana guaranty guide

Personal Guaranty Guide for Indiana

A borrower-focused guide to Indiana guaranty exposure, SBA guarantees, foreclosure deficiency risk, and personal-asset review.

Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team

General information, not legal or financial advice.

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Overview

Indiana guaranties should be reviewed for unlimited and continuing liability, future advances, waiver of defenses, collateral pledges, and whether the guarantor has notice rights before amendments or defaults.

Indiana is not a community-property state, but ECOA still limits spouse-signature requirements. Confession or warrant-of-attorney wording should be escalated because Indiana procedure is not a generic boilerplate issue.

Enforceability topics to check

Confession of judgment / cognovitNeeds lawyer verification

Indiana has statutory provisions addressing warrants of attorney and judgments by confession, but current commercial guaranty enforceability should be verified by Indiana counsel before relying on any clause.

Indiana Code Title 34 — civil procedure
Deficiency judgments after collateral saleNeeds lawyer verification

Indiana mortgage foreclosure and UCC collateral-sale issues are fact-specific. A guarantor should verify notices, sale process, valuation, waivers, and any separate guaranty action with Indiana counsel.

Indiana Code Title 32 — property
Spousal signature and ECOAHigh confidence

Indiana is not a community-property state. ECOA / Regulation B still limits when a creditor can require a spouse or additional party to guarantee.

CFPB Regulation B / ECOA
Statute of limitationsNeeds lawyer verification

Indiana limitation periods vary by written contract, promissory note, UCC claim, demand, payment, and accrual facts. Do not assume one deadline without reviewing the instrument.

Indiana Code Title 34, Article 11 — limitation of actions
Homestead exemptionNeeds lawyer verification

Indiana has statutory exemptions from execution, including real-estate/residence-related protection, but amounts, ownership, liens, and bankruptcy treatment need current local review.

Indiana Code Title 34 — execution exemptions

Borrower protections to negotiate

  • Strike confession-of-judgment, cognovit, or warrant-of-attorney language unless Indiana counsel approves it.
  • Cap guaranty liability and exclude future advances, modifications, and affiliate debts without written consent.
  • Preserve foreclosure, valuation, notice, and commercially reasonable sale defenses.
  • Limit spouse signatures to legitimate collateral or credit-support needs under ECOA.
  • Require release after payoff, refinance, sale of the business, or negotiated burn-off milestones.

Official resources

SBA Form 148 — Unconditional Guarantee SBA SOP 50 10 — Lender and Development Company Loan Programs 13 CFR § 120.160 — SBA loan conditions CFPB Regulation B / ECOA — 12 CFR Part 1002 Indiana Code Title 34 — civil law and procedure Indiana Code Title 32 — property Indiana General Assembly — Indiana Code

Legal-review notes

Guide confidence marker: Needs lawyer verification.

  • Indiana confession-of-judgment and warrant-of-attorney treatment for commercial guaranties needs lawyer verification before paid promotion.
  • Indiana limitation periods for guaranties, notes, and written contracts need local review against the exact instrument.
  • Confirm current Indiana exemption amounts and homestead/residence treatment before publishing asset-protection claims.

Frequently asked questions

Can an Indiana guaranty include confession-of-judgment language?

This guide does not make a broad enforceability claim. Any Indiana confession, cognovit, or warrant-of-attorney clause should be reviewed by local counsel before signing.

Does Indiana require a spouse to guarantee business debt?

Not simply because the applicant is married. Indiana is not a community-property state, and ECOA limits when an additional spouse signature can be required.

What should Indiana borrowers negotiate first?

Start with removal of confession language, a guaranty cap, future-advance limits, deficiency-defense preservation, and release mechanics.