What is the statute of limitations on debts?

In California, debts have a statute of limitations, which determines the length of time that a creditor has to take legal action against a debtor to collect on an unpaid debt. In California, the statute of limitations for oral contracts, written contracts, and open accounts (such as credit card debt) is four years. This means that if a debtor has not paid an open account debt (for example, credit card debt) within four years of when the debt was incurred, the creditor cannot sue the debtor to collect on the debt. The statute of limitations for promissory notes is four years as well. These are written agreements that provide a set timeline for repayment of a loan. If the debt is not paid off within four years of when the promissory note was executed, the lender cannot sue to collect. There are other types of debt that have a different statute of limitations in California. For example, the statute of limitations for lawsuits based on fraud is three years, and for foreclosure of a mortgage on real estate, it is four years. In California, the statute of limitations on debts does not begin to run until the last payment was made, or if no payments were made, the last date on which a payment was due. Additionally, if an acknowledgment of the debt is made by the debtor, the statute of limitations can be reset. It is important to note that the statute of limitations can be different in other states and can vary depending on the type of debt. It is a good idea to research the statute of limitations on debts in the specific state before taking legal action to collect on an unpaid debt.

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What is the statute of limitations on debts?

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