"Statute of limitation" for debt collection?

Edwards Finance > Debt Recovery

Q. I've read that there's something that resembles a "statute of limitation" when it comes to collecting a debt.Could somebody confirm that this is true? And if it is true,what time span are we talking about? I assume it would be years rather than months.

A. -Something that "resembles" a statute of limitations? Does a statute of limitations resemble a statute of limitations? Do you mean that you want to know whether there is something _other_ than a statute of limitations, that resembles a statute of limitations, that applies to collecting a debt? I think that what you wanted to ask was whether there is a statute of limitations that applies to collecting a debt. Of course there is. There is a statute of limitations for everything (except maybe certain serious crimes). Your question can't be answered with the sparce information given, since the limitation period depends on the nature of the debt (breach of written contract, breach of oral contract, bad check, etc.) and varies from state to state. -Almost all debts are subject to a statute of limitations in almost all jurisdictions. (but child support is not a "debt"). A statute of limitations is the time within which a lawsuit must filed. The generic rule is that the time commences when the "cause of action" accrues, i.e., when payment becomes due, but there are many special rules on this such as for installment accounts, credit card accounts. The typical limitation period is 4 years for written contracts. There are also "tolling" rules -- when the period is suspended or interrupted. The whole subject is very fact dependent. That's why you will find lawyers reacting to your question with a little pique and frustration. They prefer to have the facts so they can decide what the precise legal questions are. For all we can tell, you are really talking about time limits for enforcement of a judgment, which is an entirely different matter. For all we know, you are asking in the context of suing someone for libel for saying you still owe a time-barred debt. That would involve entirely different questions. Now, if you are talking about a credit card account in California, I could tell you that, absent some unusual and tricky arguments, a complaint has to be filed within four years from the last payment on the account or the right to enforce the debt is lost.

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