Statute of limitations
A statute of limitations is the legal term used that corresponds to that limited period of time creditors or debt collectors have available to them to file a lawsuit against you to recover a debt.
Why is this important to know?
Simple: Most statutes of limitations fall into the 3-6 years range, although in some jurisdictions statute of limitations might last longer. It all depends on where you live and where you lived when you took on the debt.
Statutes of limitation may vary depending on:
- state laws
- the type of debt you have, or
- the state law named in your credit agreement