Statutes of Limitation on Debt Collection by State

Many people are unaware of the statute of limitations on debt collections. You can not be made to pay a debt that is older than the limit set by your state.Every state has set a time limit that requires a creditor to institute legal action against a debtor for non-payment of their debt.Once that time limit is exceeded a creditor or debt collector no longer has a right to file suit to collect that debt. As each state is different a have included a chart to determine that limitation in your state.

These statutes do not prevent the creditor from filing suit against you after the statute of limitations has expired but if a creditor or debt collector does file suit, you can ask the judge to dismiss the lawsuit for the reason that the statute of limitations has expired.In many cases as the statute of limitations is about to toll you may hear from your creditor or a collection agency. This approaching deadline may force the creditor to sue you immediately.

Some states apply their statute of limitations differently to different types of debt.For example in Florida an open account, one without a contract in writing, only allows the creditor a four year window to litigate.By contrast, accounts with a contract are afforded a five year time limit.If you haven't paid your debt by the end of the statutory period and the creditor gets a judgment before the limit tolls the state grants a twenty year period wherein the creditor may pursue court award.

Typically the statute period begins when there is a breach of contract.In a number of states the creditor can restart the statute period when a partial payment is received, a promise to pay is received or some other acknowledgement of the debt is made.

Creditors and collection agencies are able to report statute barred debt to the credit bureaus provided they comply with the Fair Credit Reporting Act.

Statute of Limitations