Indiana § 32-18-1-13 - Lien or encumbrance on property sold
Full text of Indiana Indiana Code § 32-18-1-13 — Lien or encumbrance on property sold, with citation guidance and answers to common questions.
§ 32-18-1-13. Lien or encumbrance on property sold
Sec. 13. (a) A part of the property assigned on which there are liens or encumbrances may be sold by the trustee subject to the liens or encumbrances.
(b) However, if the trustee is satisfied that the general fund would be materially increased by the payment of the liens or encumbrances, the trustee shall make application, by petition, to the judge of the circuit court, superior court, or probate court for an order to pay the liens and encumbrances before selling the property. Before the holder of any lien or encumbrance is entitled to receive any part of the holder's debt from the general fund, the holder shall proceed to enforce the payment of the debt by sale, or otherwise, of the property on which the lien or encumbrance exists. For the residue of the claim, the holder of the lien or encumbrance shall share pro rata with the other creditors, if entitled to do so under Indiana law.
[Pre-2002 Recodification Citation: 32-12-1-13.]
As added by P.L.2-2002, SEC.3. Amended by P.L.84-2016, SEC.139.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 32-18-1-13
What does Indiana Code § 32-18-1-13 cover?
Section 32-18-1-13 ("Lien or encumbrance on property sold") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 32-18-1-13?
A common citation format is "Indiana Code § 32-18-1-13" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 32-18-1-13 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.