A statute of limitations on debt limits for how long a debt can hang out there over your head. Are you being inundated with phone calls from debt collection agencies looking for the repayment of debt? Before you make an offer to them to repay some of your old debt, it is crucial to determine how old the debt is. In Oklahoma, some laws limit the amount of time a debt collection lawsuit can be brought. This is known as the statute of limitations. If your debt originated before this time period, the lender cannot file a lawsuit against you to recover the debt. On the other hand, if the debt falls inside the statute think about filing a chapter 7 or 13 and getting a fresh start.
What Is The Statute Of Limitations on Debt
The statute of limitations on debt is the time period that a creditor or other debt collection agency has to file a lawsuit against you to recover the money owed. If the statute of limitations has expired, the creditors or collection agencies can no longer file suit against you to recover the money owed.
Depending on the state and the contract language of the agreement, the statute of limitations may differ. It will also depend on the type of debt.
What Is The Statute Of Limitations In Oklahoma?
In Oklahoma, the statute of limitations on old debt depends on the type of debt. The table below describes the usual statute of limitations for the different kinds of bad debt in Oklahoma.
|Type of Debt||Deadline|
|Open Account||5 years|
|Written Contract||5 years|
An open account is usually the broadest and most common category that many debt collection companies are looking to collect upon. Open accounts refer to credit cards, department store cards, and lines of credit. The available credit is kept open in anticipation of future purchases. It is up to the borrower when and how much of their available credit limit is used. The account remains an open account until payment in full is received, at which point it becomes a closed account. This type of account has a five-year statute of limitations.
If the debt is based upon a written contract, the Oklahoma statute of limitations is also five years. A written contract can be used in many situations. Usually, to qualify as a written contract, the amount will be agreed upon, and both parties will sign the agreement for services to be provided or products to be exchanged. To determine the statute of limitations for a written contract, read the contract terms carefully. The contract could specify the state’s law that will govern the contract. Whichever state law governs could have a different statute of limitations than Oklahoma.
Finally, an oral contact debt has a statute of limitations of only three years. An oral contract is an agreement not placed in writing for the exchange of products or services. Without a written agreement, the debt will only be able to be collected for three years.
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When Does The Statue Of Limitations Start?
Usually, the statute of limitations starts on the date of your last payment made on the debt. Therefore, it does not begin when you open the credit card or even charge the last purchase.
It is vital that if you are waiting for the statute of limitations to run on a specific debt, you do not make a payment on the debt. This payment resets the clock and will allow the debt collector another three or five years to file suit against you to recover the payment.
Our Oklahoma Bankruptcy Attorneys Can Help
Our Tulsa, Oklahoma attorneys are experienced in dealing with the debt statute of limitations and helping you determine the best way to handle your debt. The attorneys at Kania Law Office are here to walk you through your options and devise a plan to help you. Call (918) 743-2233 today to schedule your appointment or contact us online.