What is the statute of limitations on personal loans?

The statute of limitations on personal loans in Washington depends on the type of loan and the terms of the loan agreement. For secured personal loans, such as a loan taken out using your home as collateral, the statute of limitations is five years. This means that the creditor has five years from the time of default to take legal action in order to collect the debt. If the loan is unsecured, such as a loan taken out without any collateral, then the statute of limitations is three years. Creditors have three years from the time of default to take legal action in order to collect the debt. The statute of limitations can also be affected by the type of loan. For example, if the loan is a student loan, then it is subject to the federal statute of limitations of six years, regardless of whether it is a secured or unsecured loan. It is important to keep in mind that the statute of limitations only applies to the legal action taken by creditors. This does not mean that the debt is erased after the applicable statute of limitations has expired. It simply means that creditors cannot take legal action to collect the debt after the statute of limitations has expired.

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What is the statute of limitations on personal loans?

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