In the United States, there are two types of statutes of limitations for debt. One is a civil statute that lasts six years in most cases and for debts owed to the federal government, it is 10 years. The other type is criminal, which varies by state but typically has a limit of five or seven years depending on whether you have been charged with fraud.
Debt collectors must abide by the statute of limitations. This means they cannot pursue legal action after the time limit has expired. They can still try to get you to pay, but they cannot take you to court. If a debt collector violates the statute of limitations, you may be able to sue them. In this article, we will explore the statute of limitations on debt in more detail.
What is the Statute of Limitations on Debt in The United States?
The statute of limitations on unpaid debt in the United States is six years for most debts and 10 years for debts owed to the federal government. This limit applies to civil and criminal statutes of limitation.
Debt collectors must abide by this limit. If they pursue legal action after the time limit has expired, you may be able to sue them.
When it comes to the statute of limitations for a credit report, the amount of time you have to take legal action against a credit bureau or other business that has reported inaccurate information on your report is determined by the state you live in. Most state laws cite a limit of two or three years, but some states have a limit of four.
There are also a few exceptions to the statute of limitations on debt. For example, you may be able to pursue legal action against debt if it is fraudulent.
If you’re not sure whether or not the statute of limitations has expired on your debt, you can check with your state’s Attorney General’s office or an attorney.
Categories of Debt
The type of debt you have can impact the statute of limitations. The following are the most common categories of debt:
- Promissory notes: A written promise to repay an old debt.
- Open-ended account: An account with a revolving balance, such as credit cards and credit card debt. Debt collectors typically try to get consumers to pay the highest interest rate possible. This is because the higher the interest rate, the more money the debt collector makes. Credit card companies also profit from high-interest rates. The Federal Reserve reports that the average credit card interest rate is over 17%.
- Installment loan: A loan repaid in fixed installments, such as a car loan or mortgage.
- Oral Agreement: A debt that is incurred as the result of an agreement made verbally, without a signed contract. e.g. a friend borrowing money from another friend
- Statutory Debt: This is a debt that is owed as the result of a law or regulation, such as unpaid taxes or traffic fines.
- Judgment Debt: A debt that has been ruled on by a court of law.
- Collection Debt: This is a debt that has been sold to a collections agency.
What are the Two Types of Statutes of Limitations for Debt?
There are two types of statutes of limitations for debt: civil and criminal.
Civil statutes of limitation apply to most debts. This is the time limit you have to pursue legal action against someone, most often a creditor. As long as you are within the statute of limitations for your state, you can take legal action against any debt that falls outside this time frame.
Criminal statutes of limitation apply to crimes, such as theft or fraud. This is the amount of time you have to pursue legal action after the crime has been committed.
How Long Does Each Type of Statute Last?
Civil statutes of limitation last for a certain amount of time, usually between three and six years. This is the time limit you have to pursue legal action against someone, most often a creditor. As long as you are within the statute of limitations for your state, you can take legal action against any debt that falls outside this time frame.
Criminal statutes of limitation last for a certain amount of time, usually between one and three years. This is the amount of time you have to pursue legal action after the crime has been committed. Federal statutes of limitation last for 10 years.
Are There Any Exceptions to the Statute of Limitations?
There are a few exceptions to the statute of limitations. For example, you may be able to pursue legal action against debt if it is fraudulent.
Another exception is when the original creditor tries to collect the debt after the statute of limitations has expired. If this happens, you may be able to sue them.
How Can I Find Out How Long the Statute of Limitations is for My State?
Each state has its own statute of limitations. You can find the statute of limitations for your state by looking it up online or contacting an attorney.
What Do Debt Collectors Have to Abide By?
Debt collectors have to abide by the statute of limitations when collecting a debt. This means they cannot pursue legal action against you after the statute of limitations has expired. If they try to collect a debt after this time frame, you may be able to sue them.
Additionally, debt collectors must abide by the Fair Debt Collection Practices Act (FDCPA). This act protects consumers from unfair or abusive debt collection practices.
Can You Still Be Pursued for a Debt After the Statute of Limitations?
Yes, you can still be pursued for a debt after the statute of limitations has expired. The creditor may try to collect the debt after this time frame, but you can sue them if they do.
The statute of limitations is the time limit that you have to pursue legal action against someone. So as long as you are within this time frame, you can take legal action against any debt that falls outside this time frame.
Key Takeaway
The statute of limitations is the time limit you have to pursue legal action against someone, most often a creditor. As long as you are within this period, you can take legal action against any debt that falls outside this timeframe. The difference between a civil and federal statute of limitations on the debt will depend largely on where your case takes place. If it’s in federal court, the statute of limitations is much longer. If it’s in state court, it will likely be shorter. However, there are some exceptions to this rule so make sure you speak with an attorney to find out more specific information applicable to your case.
Debt collectors are often relentless in their pursuit of payment or even a partial payment, but what happens when the statute of limitations expires? The short answer is that the creditor can still try to collect the debt, but you can sue them if they do.
The statute of limitations (SOL) is the time limit you have to file a lawsuit against someone for a wrong they have done to you. This limit varies based on where you live but is usually around 3 to 6 years. After the SOL expires, the creditor can still try to collect the debt, but you can’t sue them for doing so.
There are a few exceptions to this rule:
- If you live in a state with a longer SOL, the creditor may be able to sue you after the SOL expires.
- If the creditor tries to collect the debt after the SOL expires, you can sue them.
- The SOL does not apply to debts that are considered fraudulent.
- The SOL does not apply if the creditor violates the Fair Debt Collection Practices Act (FDCPA).
The statute of limitations on debt is an important thing to be aware of, especially if you’re being harassed by debt collectors. Knowing your rights and the SOL in your state can help you protect yourself from unlawful collection practices.