Many consumers are in the dream that there
is a statute of limitations on the debt they owe to banks
& other creditors. However, the fact is that there is
NO statute of limitations on unsecured debt. However, there
is a limitation on the time creditors have to sue you and
recover their losses.
You are obligated to pay any of these
debts if you owe them:
-
- Unpaid tax liabilities
- Underpayment of salaries, wages & royalties
- Money owed to insurance companies
- Credit card debt
If you owe any of this debt, it will be written
on your credit report and you STILL owe the debt, no matter for
how long the debtor has contacted you. For example, if you owe
American Express $5000 and its been 3 years since they last contacted
you, then the legal amount of time that Amex has to sue you is
over. However, you still owe that $5000 debt and Amex has other
means of recovering debt owed.
The # of years that debtors have to sue you
and recover their losses varies from state to state. Furthermore,
the rules & means of recovering these losses is different
to each state. For example, some states allow debtors to recover
property & other assets in return for debt owed while others
don't. You should consult your attorney for any debts owed and
what property can be confiscated from you, and what your legal
rights are.
However note that you as a consumer also have
the right for fair trial. If you believe you have been harassed
by a debtor, you should file a complaint with the Federal Trade
Commission. Their website is located at: www.ftc.gov
Debt Statute of Limitations by State
| State |
Oral |
Written |
Promised |
| Alabama |
6 |
6 |
6 |
| Alaska |
3 |
3 |
3 |
| Arizona |
3 |
6 |
6 |
| Arkansas |
3 |
5 |
5 |
| California |
2 |
4 |
4 |
| Colorado |
6 |
6 |
6 |
| Connecticut |
3 |
6 |
6 |
| Delaware |
3 |
3 |
6 |
| DC |
3 |
3 |
3 |
| Florida |
4 |
5 |
5 |
| Georgia |
4 |
6 |
6 |
| Hawaii |
6 |
6 |
6 |
| Idaho |
4 |
5 |
5 |
| Illinois |
5 |
10 |
10 |
| Indiana |
6 |
10 |
6 |
| Iowa |
5 |
10 |
10 |
| Kansas |
3 |
5 |
5 |
| Kentucky |
5 |
15 |
15 |
| Louisiana |
10 |
10 |
5 |
| Maine |
6 |
6 |
6 |
| Massachusetts |
3 |
3 |
3 |
| Michigan |
6 |
6 |
6 |
| Minnesota |
6 |
6 |
6 |
| Mississippi |
6 |
6 |
6 |
| Missouri |
3 |
3 |
3 |
| Montana |
5 |
10 |
10 |
| Nebraska |
5 |
8 |
8 |
| Nevada |
4 |
5 |
5 |
| New Hampshire |
4 |
6 |
6 |
| New Jersey |
3 |
3 |
3 |
| New Mexico |
6 |
6 |
6 |
| New York |
4 |
6 |
6 |
| North Carolina |
3 |
3 |
3 |
| North Dakota |
6 |
6 |
6 |
| Ohio |
6 |
15 |
15 |
| Oklahoma |
3 |
5 |
5 |
| Oregon |
6 |
6 |
6 |
| Rhode Island |
10 |
10 |
10 |
| Pennsylvania |
4 |
4 |
4 |
| South Carolina |
3 |
3 |
3 |
| South Dakota |
6 |
6 |
6 |
| Tennessee |
6 |
6 |
6 |
| Texas |
4 |
4 |
4 |
| Utah |
4 |
6 |
6 |
| Vermont |
6 |
6 |
6 |
| Virginia |
3 |
5 |
5 |
| Washington |
3 |
6 |
6 |
| West Virginia |
5 |
10 |
10 |
| Wisconsin |
6 |
6 |
6 |
| Wyoming |
8 |
10 |
10 |
