Perspectives

If you’re dealing with old debts, you might be wondering whether a debt collector can still sue you. The answer lies in something called the statute of limitations-a legal time limit for debt collectors to take action.

What is the Statute of Limitations on Debt?

That statute of limitations is the period during which a creditor or debt collector can legally sue you to collect on a debt. After this period passes, your debt is considered “time-barred”, and while you may still owe the money, a collector cannot sue you in court to enforce the debt.

How Long is the Statute of Limitations?

In general, debt collectors or creditors have 6 years from the date of your last payment or acknowledgment of the debt to file a lawsuit. This means if you haven’t made a payment or admitted to owing the debt in that time, they may be out of legal options to collect through the courts.

What Can Restart the Clock?

It’s important to be cautious-certain actions can restart the 6 year clock:

• Making a payment: Any payment-no matter how small-resets the 6 year statute of limitations.
• Acknowledging the Debt: Simply admitting that you owe the money (even in a phone call) or asking for more time to pay can restart the clock.

These seemingly small actions can give debt collectors a fresh opportunity to sue.

What if a Debt Collector Still Sues?

Just because a debt is time-barred doesn’t mean a collector won’t try to sue. A lawsuit officially starts when you’re served with a summons and complaint-not when it’s filed in court.

If this happens, you must respond-usually within 20 days-by serving an answer and asserting the statute of limitations as a defense. If you don’t respond, the court could enter a default judgment against you, even if the debt is legally uncollectible.

What Happens if a Judgment is Entered?

A judgment gives the deebt collector powerful tools to collect the debt, such as:

• Placing a lien on your real property
• Garnishing wages
• Levying your bank account

A Word of Caution

While the statute of limitations can protect you from being sued for old debt, relying on it as a strategy to avoid your obligations is risky. The creditor can sue at any point within the 6-year window, and unpaid debts can damage your credit for up to 7 years-or even longer for certain types of debt like student loans and tax debt.

Final Thoughts

If you’re unsure about the status of debt or have been contacted by a collector, don’t go it alone. Understanding your rights-and your risks-can help you make informed decisions. In some cases, seeking legal guidance can help you protect yoruself and your financial future.

WFJ can help with that. 

When it comes to legal disputes, time is not always on your side. The statute of limitations sets a deadline for how long you have to bring a lawsuit after an event occurs. Once this period expires, you may lose your right to take legal action entirely. At Wagner, Falconer & Judd, we want to help individuals and businesses understand this crucial legal concept so they can protect their rights and make informed decisions.

What is a Statue of Limitations?

A statute of limitations is a law that establishes the maximum amount of time a party has to initiate legal proceedings after an incident. These deadlines vary based on the type of claim and the jurisdiction where the case is filed. The primary purpose of statutes of limitations is to ensure fairness by preventing claims from being brought too long after the fact, when evidence may be lost, and memories may fade.

Why Does the Statute of Limitations Matter?

If you wait too long to take legal action, you could permanently lose your ability to seek compensation or justice. Courts strictly enforce these deadlines, and missing them-even by a single day-can mean your case is dismissed before it even starts. This is why it is crucial to understand and track relevant time limits.

Common Statutes of Limitations

While every state has its own laws governing statutes of limitations, here are some general timeframes for common legal claims:

• Personal Injury- Typicially 2-3 years from the date of the injury
• Contract Disputes- Typically 4-6 years for written contracts and 2-4 years for oral contracts
• Property Damage- Usually 3-6 years
• Medical Malpractice- Often 2-4 years, sometimes from the date of discovery
• Debt Collection- Varies, but typically 3-6 years depending on the type of debt
• Employment Discrimination- Often requires filing a claim with the EEOC within 180-300 days
• Worker’s Compensation Claims- Usually requires reporting an injury within days or weeks of filing a claim within 1-2 years

Exceptions and Tolling the Statute of Limitations

In some cases, the statute of limitations may be extended or “tolled”. Common reasons for tolling include:

• The injured party was a minor at the time of the incident
• The defendent lef the state, preventing legal action
• The injury was not discovered until later (e.g., in cases of medical malpractice)
• Fraud or concealment delayed the discovery of the issue

What Should You Do if You Think You Have a Legal Claim?

If you believe you may have a legal claim, the best course of action is to consult with an attorney as soon as possible. Here’s what you should do:

Determine When the Clock Starts: The deadline typically begins the date of the incident or the date you became aware of the harm.

Gather Evidence: Preserve any documents, photos, or other relevant evidence.

Contact an Attorney: A lawyer can help assess your claim, calculate deadlines, and guide you through the legal process.

Don’t Wait Until the Last Minute: Legal claims take time to prepare, and waiting too long could mean missing your opportunity to take action.

Let Us Help You Navigate Deadlines and Legal Options

Understanding the statute of limitations is essential for protecting your legal rights. At Wagner, Falconer & Judd, we help individuals and businesses navigate legal deadlines, evaluate potential claims, and take timely action. If you have questions about whether you still have time to file a claim, contact our team today. We’re here to provide guidance and ensure you don’t miss critical legal guidelines.

Don’t let time run out on your legal rights-reach out to us today!

Mediation is when a neutral third party, called a mediator, works with each party in a lawsuit to reach a compromise before going to trial. The mediator will point out issues in the case or areas of weakness and the benefits of settling. Some of the benefits of settling include, less stress, fewer expenses, and a faster agreement. And unlike judge or jury decisions, settlements cannot be appealed, this allows you to achieve finality on the case so you can move on with your life.

Because of all these benefits, judges almost always order parties to mediate the case before going to trial. Even when a judge doesn’t order mediation, parties often agree to mediate to save the expense and stress of going to trial.

The attorneys at Wagner, Falconer & Judd are skilled at translating legalese for our clients, and are here to help you navigate the complex legal process. If you think you could benefit from our services, reach out today. Having a dedicated attorney on your side is always a good plan!