Being in debt is stressful, especially when you are being contacted by creditors. You may be wondering what the statute of limitations can mean for your existing debt.
What is a Statute of Limitations?
A statute of limitation is a deadline to file a lawsuit that is applied to agreements like written contracts, credit card accounts, promissory notes (like a mortgage loan). For more examples, click here. These time-frames will vary based on the state in which you live. So, be sure to check with an attorney for more information.
What Does This Mean For Your Debt?
In California, if a written contract is breached, you have 4 years from the original date. If it is a verbal contract, the statute of limitations will expire in 2 years. For judgement, you have 10 years. Remember, if you make a payment on an outstanding debt, the statute of limitations will begin again. This will leave the door open for creditors to contact you for payment.
Still Unsure What to Do?
Since there is a chance that you may have problems with old debts, you need to review your options. Speaking with an experienced bankruptcy attorney will help you better understand statutes of limitations. You will also discuss your best options for handling your debt.
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.