What is the statute of limitations on debt?

The statute of limitations on debt in California is four years. This means that a creditor has four years from the date of last payment or the date of the last written agreement between the debtor and creditor to sue the debtor for payment. After the four-year period has expired, any remaining debt is considered “time-barred” and can no longer be collected. However, even if the debt is considered time-barred, it does not necessarily mean that the debt is permanently erased. The four-year limit still applies to the creditor’s ability to sue the debtor, but the debt may still be reported on the debtor’s credit report for a period of seven years. It is important to note that the four-year statute of limitations is only applicable in California and may vary in other states. For example, in some states, the statute of limitations can be as short as three years, or as long as six years. Additionally, there may be exceptions to the statute of limitations that could extend the time period. For example, if the debtor makes a new payment or recognizes the debt in writing, the four-year time limit may be extended. It is important to understand the statute of limitations laws in your state in order to understand the legal rights and responsibilities associated with debt. If you are ever uncertain, it is best to consult a lawyer for advice.

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What is the statute of limitations on debt?

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