When is a creditor’s claim considered “timely”?

In Texas, a creditor’s claim is considered timely if it is made within the periods of limitation set out in the Texas Civil Practice & Remedies Code (CPRC). These periods of limitation relate to the number of years in a statute of limitations, which begins to run from the date of default or breach of contract. For most transactions, the general statute of limitations is four years from the date of the breach or default of contract, but in some cases, the periods of limitation are as short as two years. The CPRC also provides for other situations where a creditor’s claim may be considered timely. For instance, a creditor’s claim may be considered timely if it is made within 120 days of the date of default or breach of contract. Furthermore, a creditor may have up to five years to bring a claim if the debtor made assurances or representations of his or her solvency one year before the date of default. Certain types of creditors may also have additional periods of limitation for their claims. For instance, judgments in favor of certain governmental bodies may be considered timely up to 10 years after the date of default or breach of contract. Ultimately, the statutes of limitations for creditors vary depending on the type of claim. It is important for creditors to investigate the period of limitation periods specific to the type of claim they are pursuing in order to ensure that their claims are timely and actionable.

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When is a creditor’s claim considered “timely”?

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