Category Archives: Collection

Debt Collectors In Hospitals

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I recently read and article featured on The New York Times , that just shocked me to what length’s debt collector’s are willing to go to collect debt’s, while you’re seeking treatment at the ER.  Hospital patients waiting in an emergency room or convalescing after surgery are being confronted by an unexpected visitor: a debt collector at their beside, urging them to pay past due bills or seeking emergency care somewhere else.

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Statute Of Limitations for Delinquent Debt

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Statute Of Limitations For Debts

The statute of limitations (SOL) for a delinquent debt is the time limit for the creditor to file a lawsuit. This period starts when the debtor becomes delinquent. The fact that the SOL has “run” (expired) on a particular debt will not necessarily prevent a lawsuit from being filed (via a Summons And Complaint), but the defendant can have the suit dismissed on this basis.

The Statute Of Limitations only covers lawsuits, and SOL expiration does not affect other types of collection action or reporting of the account to credit bureaus. The creditor or collection agency may theoretically continue with letters and telephone calls forever (although third-party collectors are subject to the “cease and desist” provision of the Fair Debt Collection Practices Act.) However, they will generally put much less effort into collecting “Out-Of-Statute” debts, and may give up easily. Out-Of-Statute debts can still be reported to credit bureaus for the time limits specified in the Fair Credit Reporting Act.

Credit cards are generally considered Open Accounts. Auto loans and other installment agreements are Written Contracts. If there has already been a lawsuit resulting in a judgment, that judgment has a separate Statute Of Limitations, which you can find here.

(The numbers on this chart indicate years.)

 

State
Oral
Agreements
Written
Contracts
Promissory
Notes
Open
Accounts
Alabama
6
6
6
3
Alaska
6
6
6
6
Arizona
3
6
5
3
Arkansas
3
5
6
3
California
2
4
4
4
Colorado
6
6
6
6
Connecticut
3
6
6
6
Delaware
3
3
6
3
D.C.
3
3
3
3
Florida
4
5
5
4
Georgia
4
6
6
4
Hawaii
6
6
6
6
Idaho
4
5
10
4
Illinois
5
10
6
5
Indiana
6
10
10
6
Iowa
5
10
5
5
Kansas
3
5
5
3
Kentucky
5
15
15
5
Louisiana
10
10
10
3
Maine
6
6
6
6
Maryland
3
3
6
3
Massachusetts
6
6
6
6
Michigan
6
6
6
6
Minnesota
6
6
6
6
Mississippi
3
3
3
3
Missouri
5
10
10
5
Montana
5
8
8
5
Nebraska
4
5
6
4
Nevada
4
6
3
4
New Hampshire
3
3
6
3
New Jersey
6
6
6
6
New Mexico
4
6
6
4
New York
6
6
6
6
North Carolina
3
3
5
3
North Dakota
6
6
6
6
Ohio
6
15
15
?
Oklahoma
3
5
5
3
Oregon
6
6
6
6
Pennsylvania
4
6
4
6
Rhode Island
15
15
10
10
South Carolina
10
10
3
3
South Dakota
6
6
6
6
Tennessee
6
6
6
6
Texas
4
4
4
4
Utah
4
6
6
4
Vermont
6
6
5
6
Virginia
3
5
6
3
Washington
3
6
6
3
West Virginia
5
10
6
5
Wisconsin
6
6
10
6
Wyoming
8
10
10
8

 

The information above is believed to be accurate at the time of the creation of this page, and is for reference only. We are not attorneys, and nothing here should be construed as or relied upon as legal advice. If you are concerned about possible lawsuits, you may wish to confirm this with your state’s Civil Code and/or a qualified attorney. If you find any discrepancies or Call National Credit Educational Services at  770-952-5168

Limitations For Collecting A Judgement

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Statue of Limitations for Judgments

After a creditor wins a lawsuit against a debtor and is awarded a judgment by the court, there is a time limit for collecting that judgment. However, many states allow judgments to be renewed one or more times, which could substantially extend the enforceability of a judgment, if the creditor is vigilant about the renewals. This can potentially result in a permanent legal obligation until it is paid.

If a lawsuit has not been filed yet, there is a separate time limit for doing so, which you can find here.

(The numbers on this chart indicate years.)

State
SOL (Years)
Maximum Interest Rate (%)
Alabama
20
12
Arkansas
10
10.5
Alaska
5
10
Arizona
10
Fed + 5
California
10
10
Colorado
20
8
Connecticut
20
10
Delaware
No Limit
Legal + Fed Discount + 5
D.C.
3
70% of interest rate
or 6% if not specified
Florida
20
10
Georgia
7
12
Hawaii
10
10
Iowa
6
10.875
Idaho
20
9
Illinois
20
8
Indiana
20
10
Kansas
5
4% above Fed Discount
Kentucky
15
12
Louisiana
10
9
Maine
20
7.5
Maryland
12
15% if under 30 months,
T-bill rate if over 30 months
Massachusetts
20
10
Michigan
10
20
Minnesota
10
6.953
Mississippi
7
5% changes yearly
Missouri
10
Amount in contract
Montana
10
9
North Carolina
5
10
North Dakota
6
1% above bond equiv Yield
Nebraska
20
2% above Prime
New Hampshire
20
10
New Jersey
14
No provisions
New Mexico
20
8.75% without written contract
Nevada
10
9
New York
10
8
Ohio
21
12
Oklahoma
5
10
Oregon
10
4% over T-bill
Pennsylvania
4
9% renewable @10 yrs
Rhode Island
20
6
South Carolina
10
12
South Dakota
20
14
Tennessee
10
10
Texas
10
10
Utah
8
can be 18% w/Agreement
or 6% without
Virginia
8
Judgement Contract Rate
Vermont
20
12
Washington
10
9
Wisconsin
10
12
West Virginia
20
10
Wyoming
5
12

 

The information above is believed to be accurate at the time of the creation of this page, and is for reference only. We are not attorneys, and nothing here should be construed as or relied upon as legal advice. If you are concerned about possible lawsuits, you may wish to confirm this with your state’s Civil Code and/or a qualified attorney. If you find any discrepancies or Call National Credit Educational Services. 770-952-5168