Can Police Keep Your Cash Even If You Aren’t Convicted in Indiana?

Police take cash during a traffic stop, arrest, or search. You expect the money to be returned if the criminal case goes nowhere. Instead, you receive paperwork saying the State wants to keep it.

Can that happen without a conviction?

Yes. Indiana’s civil-forfeiture law can allow the State to seek forfeiture of cash without first obtaining a criminal conviction. But seizing money and establishing a legal right to keep it are different things.

The government must follow the applicable procedures and prove that the property qualifies for forfeiture.

What Is Civil Forfeiture?

Civil forfeiture is a legal process through which the government seeks ownership of property allegedly connected to criminal activity.

Under Indiana Code § 34-24-1-1, certain money may be subject to forfeiture when it was furnished or intended for an unlawful exchange, used to facilitate criminal activity, or traceable to criminal proceeds, within the statute’s terms.

For example, prosecutors may allege that seized cash represents proceeds of drug dealing.

Carrying cash—even a substantial amount—is not, by itself, a crime. The relevant question is whether the State can establish the connection required by the forfeiture statute.

How Is Seizure Different From Forfeiture?

A seizure occurs when law enforcement takes custody of property.

Forfeiture is the process through which the State seeks a judgment allowing it to retain or dispose of that property.

An officer’s decision to take money does not settle who ultimately owns it. Indiana law provides procedures for judicial review and for contesting the forfeiture claim.

It is also important to determine why the money is being held. Property retained as evidence may raise different issues from property pursued through a civil-forfeiture action.

Why Isn’t a Criminal Conviction Always Required?

A criminal prosecution and a civil-forfeiture proceeding are separate matters with different burdens of proof.

In a criminal case, the State must prove guilt beyond a reasonable doubt.

Under Indiana Code § 34-24-1-4, the prosecutor generally must prove that property qualifies for forfeiture by a preponderance of the evidence—meaning the required proposition is more likely true than not.

Because the proceedings differ, dismissal of criminal charges does not necessarily resolve a pending civil-forfeiture case.

Do not assume that your money will automatically be returned because you were not convicted.

What If the Cash Came From Work, Savings, or a Sale?

Evidence of a lawful source can be important.

Depending on the circumstances, useful records may include:

Pay records.
Bank statements and withdrawal receipts.
Business invoices and accounting records.
Documents showing a vehicle or other property sale.
Records explaining ownership and the intended use of the money.

Preserve existing records and provide them to your attorney. Do not create, alter, or backdate documents.

Indiana law also contains a provision allowing certain property found near or on a person committing specified offenses to serve as prima facie evidence of a criminal connection. That provision is not a blanket rule that all money found near drugs automatically belongs to the government.

An attorney should evaluate whether the provision applies and what evidence can rebut the State’s position.

Are There Deadlines?

Yes—and ignoring forfeiture paperwork can put your property at risk even if you have a defense.

For actions under Indiana Code § 34-24-1-3, the statute generally requires the prosecutor to file within:

90 days after seizure, or
21 days after receiving the owner’s written demand for return,

whichever occurs first.

The statute also provides a 20-day period after service of the complaint for an owner or qualifying interested person to file an answer. Failure to respond can lead to a default judgment.

These are not interchangeable deadlines. The applicable procedure, service documents, and any court orders should be reviewed promptly. Federal forfeiture proceedings have different rules; these Indiana deadlines should not be assumed to govern a federal notice.

Can You Ask for a Jury Trial?

In State v. $2,435 in U.S. Currency, the Indiana Supreme Court held in 2023 that the Indiana Constitution protects the right to a jury trial in an in rem civil-forfeiture action of that kind.

That does not mean a jury trial happens automatically. A timely, proper demand matters.

An attorney can evaluate that right alongside the State’s evidence, the legality of the seizure, and compliance with the required procedures.

What Should You Do If Police Take Your Money?

Keep the property receipt, seizure paperwork, envelopes, notices, and court documents. Record when you received them. Gather existing documents showing where the money came from and who owns it.

If a related criminal investigation is pending, coordinate your response carefully with counsel. Statements made while trying to recover money may affect that investigation.

Most importantly, do not ignore a civil-forfeiture case while waiting for the criminal case to end.

The Bottom Line

A lack of conviction does not automatically prevent civil forfeiture in Indiana. But the government does not gain an unlimited right to your money merely because an officer seized it.

The statutory connection to criminal activity, the evidence, and the procedural deadlines all matter.

Contact Mo AlMahareeq Law for a free 15-minute phone consultation to discuss a seizure connected to an Indiana criminal investigation and possible next steps.

Schedule a free consultation by phone.

Sources

This article provides general information, not legal advice. State and federal forfeiture procedures differ, and deadlines require case-specific review.