Statute of Limitations

The statute of limitations has been designed to stop legal action against debts that are too old according to the US Federal Government. The statutes are different for different types of contracts and where you live. We have organized the types of contracts as well as the individual statutes for each state below.

Oral Contract: You agree to pay money loaned to you by someone or some company. This contract or agreement is verbal (i.e., no written contract, "handshake agreement" or "verbal agreement"). Verbal contracts are legal but tougher to prove in court.

Written Contract: You agree to pay on a loan under the terms written in a document, which you and your creditor have signed.

Promissory Note: You agree to pay on a loan via a written contract, just like the written contract. The difference between a promissory note and a regular written contract is that the scheduled payments and interest on the loan also is spelled out in the promissory note. A mortgage is an example of a promissory note.

Open-ended Accounts: Open-ended accounts are usually credit cards, department store, and gas cards. They are revolving lines of credit, which means that you use credit and pay a monthly payment that usually ranges from 2% to 5% of the balance.

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