Statute Of Limitations

Every state has laws governing the time in which a creditor can file suit to collect a debt, the statute of limitations. Generally, a creditor or debt collector gives up his right to file suit to collect a debt after a period of six years from the time the debt was written off. (or the date of last activity on your credit report), but various states allow anywhere from 2 to 15 years to collect delinquent debt. Find out what your state's limitations are and whether the creditor is beyond that date. If the time limit has passed, ask the court to dismiss the suit.

Resource: Debt Collection Statute of Limitations

What is a written contact? A contract is an agreement between two or more parties. The foundation of most contracts is a set of mutual guarantees. The guarantees made by the parties define the rights and obligations of the parties. And if one of the parties doesn't meet their contractual obligations (breaches the contract), the non-breaching party may be entitled to receive relief through the judicial system.

What is a promissory note? A promisary note is a written promise to pay or repay a specified sum of money at a stated time or on demand. Also called note of hand.

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