The statute of limitations for debt collection is a critical legal framework determining the time frame a creditor can legally sue to collect a debt. In Connecticut, this period varies depending on the type of debt involved.
The statute of limitations for debt collection in Connecticut is governed by state law. It sets a deadline after which legal action to collect a debt is no longer valid. This period starts from the date of the last activity on the account, which could be a payment made or an acknowledgment of the debt.
Statute of limitations by debt type
For written contracts, including most types of loan agreements, the statute of limitations in Connecticut is six years. This means that a creditor has six years from the last activity to initiate legal proceedings for debt collection. The statute of limitations is also six years for oral contracts, where the agreement was made verbally without a written record.
Credit card debts and open-ended accounts
Credit card debts, considered open-ended accounts, have a statute of limitations of six years in Connecticut. This period is counted from the last payment date or the date the account becomes delinquent, whichever is later. Making a payment or acknowledging the debt can restart the statute of limitations.
Impact of the statute of limitations
Once the statute of limitations expires, creditors can no longer sue to collect the debt. However, this doesn’t mean the debt is erased. The creditor may still attempt to collect the debt through other means, such as phone calls or letters. The expiration of the statute of limitations doesn’t remove the debt from a credit report.
Understanding how this impacts debts is beneficial for anyone who’s facing an onslaught of creditor calls. Working with someone who can help navigate these matters may be beneficial.